RE ASIA TODAY LTD

RE ASIA TODAY LTD

The court applied the established scheme-sanction criteria, found they were satisfied, concluded the small proportion of German-law governed debt did not undermine the Scheme's efficacy, and therefore granted sanction to the Scheme as presented; the court also authorised amendment to allow provisional liquidators' costs to be paid by the investor in accordance with the restructuring agreement and relevant precedent.

Citation
[2021] HKCFI 3841
Parties
Company/applicant: Asia Today Limited (In Provisional Liquidation); Provisional Liquidators/applicants: Provisional Liquidators; Creditors/respondents: Scheme Creditors (unsecured creditors); Investor: Investor (unnamed); Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 December 2021
Case Number
HCCW76/2020
Procedural Posture
Scheme of Arrangement and Companies Winding Up Proceedings / Sanction Hearing and Decision (judgment)
Outcome
Scheme sanctioned; provisional liquidators authorised to have their costs paid by the investor pursuant to the restructuring agreement
Legal Topics
Scheme of Arrangement, Provisional Liquidation, Creditor Voting and Class Composition, Payment of Liquidators' Costs by Third Party, Foreign Law Governed Claims
Source Language
EN
Company Law Insolvency Law Cross Border Insolvency Scheme of Arrangement Provisional Liquidation Creditor Voting and Class Composition Payment of Liquidators' Costs by Third Party Foreign Law Governed Claims

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Parties

Asia Today Limited (In Provisional Liquidation)

Company/applicant

Provisional Liquidators

Provisional Liquidators/applicants

Scheme Creditors (unsecured creditors)

Creditors/respondents

Investor (unnamed)

Investor

Official Receiver

Official Receiver

Procedural Posture

Scheme of Arrangement and Companies Winding Up Proceedings / Sanction Hearing and Decision (judgment)

Legal Issues

  1. 1 Whether the proposed scheme is for a permissible purpose
  2. 2 Whether unsecured creditors formed a proper single class
  3. 3 Whether the meeting was duly convened and statutory majorities obtained

Ratio Decidendi

The court applied the established scheme-sanction criteria, found they were satisfied, concluded the small proportion of German-law governed debt did not undermine the Scheme's efficacy, and therefore granted sanction to the Scheme as presented; the court also authorised amendment to allow provisional liquidators' costs to be paid by the investor in accordance with the restructuring agreement and relevant precedent.

Court Disposition

Scheme sanctioned; provisional liquidators authorised to have their costs paid by the investor pursuant to the restructuring agreement

Orders

  • Order sanctioning the Scheme in the form presented to the Court
  • Order amending the order appointing the provisional liquidators to permit their costs to be paid by the investor pursuant to the restructuring agreement