RE PING AN SECURITIES GROUP (HOLDINGS) LTD

RE PING AN SECURITIES GROUP (HOLDINGS) LTD

The court recognised and granted assistance to the Bermuda-appointed soft-touch provisional liquidators to the extent consistent with their status under Bermuda law and Hong Kong private international law, and adjourned the winding-up petition to 10 May 2021 because the Company demonstrated a realistic and...

Source-derived case information.

Citation
[2021] HKCFI 651
Parties
Petitioner: Yang Xueli; Company/respondent: Ping An Securities Group (Holdings) Limited; Applicants/joint Provisional Liquidators: Joint Provisional Liquidators of Ping An Securities Group (Holdings) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 March 2021
Case Number
HCCW217/2020
Procedural Posture
Companies Winding Up Proceedings With Recognition/assistance Application / Hearing and Decision on Petition Adjournment and Recognition/assistance (application to Adjourn Petition; Recognition Application Heard)
Outcome
Petition adjourned to 10 May 2021; recognition and assistance order granted with modifications; costs reserved; leave to appeal refused
Legal Topics
Soft Touch Provisional Liquidation, Recognition and Assistance, Winding Up Petition Adjournment, Scheme of Arrangement, Rule in Gibbs
Source Language
en
Insolvency Private International Law Companies Law Restructuring Soft Touch Provisional Liquidation Recognition and Assistance Winding Up Petition Adjournment Scheme of Arrangement +1 more

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Parties

Yang Xueli

Petitioner

Ping An Securities Group (Holdings) Limited

Company/respondent

Joint Provisional Liquidators of Ping An Securities Group (Holdings) Limited

Applicants/joint Provisional Liquidators

Procedural Posture

Companies Winding Up Proceedings With Recognition/assistance Application / Hearing and Decision on Petition Adjournment and Recognition/assistance (application to Adjourn Petition; Recognition Application Heard)

Legal Issues

  1. 1 Whether Hong Kong court should recognise and assist foreign soft-touch provisional liquidators appointed in Bermuda
  2. 2 Whether petition to wind up should be adjourned to permit restructuring and a scheme of arrangement
  3. 3 Whether soft-touch provisional liquidation constitutes a collective insolvency process

Ratio Decidendi

The court recognised and granted assistance to the Bermuda-appointed soft-touch provisional liquidators to the extent consistent with their status under Bermuda law and Hong Kong private international law, and adjourned the winding-up petition to 10 May 2021 because the Company demonstrated a realistic and time-limited restructuring proposal (subscription by Mr Cheung, creditor engagement and timetable tied to HKEX black-out ending) sufficient to satisfy the criteria for adjournment; however the recognition order was limited by removing investigatory powers sought and amending proposed terms, costs were reserved and leave to appeal was refused.

Court Disposition

Petition adjourned to 10 May 2021; recognition and assistance order granted with modifications; costs reserved; leave to appeal refused

Orders

  • Adjourn petition to 10 May 2021
  • Grant recognition and assistance to the Bermuda-appointed Joint Provisional Liquidators subject to amendments to the proposed order