RE THE JOINT PROVISIONAL LIQUIDATORS OF PING AN SECURITIES GROUP (HOLDINGS) LIMITED (PROVISIONAL LIQUIDATORS APPOINTED) (FOR RESTRUCTURING PURPOSES)

RE THE JOINT PROVISIONAL LIQUIDATORS OF PING AN SECURITIES GROUP (HOLDINGS) LIMITED (PROVISIONAL LIQUIDATORS APPOINTED) (FOR RESTRUCTURING PURPOSES)

The court will recognise and assist foreign soft-touch provisional liquidators to the extent recognition confirms their status under the law of incorporation and ancillary powers that flow from that status, provided Hong Kong's requirements are met; on facts the Company and JPLs established sufficient basis for recognition and a short adjournment to 10 May 2021 to pursue a restructuring by way of a scheme of arrangement, subject to modification of the terms of assistance and reservation of costs; leave to appeal was refused.

Citation
[2021] HKCFI 651
Parties
Petitioner: Yang Xueli; Company / 1st 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
HCMP1810/2020
Procedural Posture
Companies Winding Up Proceedings and Ancillary Recognition/assistance Application / Hearing on Recognition and Adjournment Application; Decision to Recognise With Modifications and Adjourn Petition to 10 May 2021
Outcome
Recognition and assistance granted with modifications; winding-up petition adjourned to 10 May 2021; costs reserved; leave to appeal refused
Legal Topics
Soft Touch Provisional Liquidation, Recognition and Assistance, Winding Up Petition Adjournment, Scheme of Arrangement, Jurisdictional Requirements, Rule in Gibbs, Leave to Appeal
Source Language
EN
Insolvency Companies Law Private International Law Cross Border Insolvency Restructuring Civil Procedure Soft Touch Provisional Liquidation Recognition and Assistance +5 more

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Parties

Yang Xueli

Petitioner

Ping An Securities Group (Holdings) Limited

Company / 1st Respondent

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

Applicants / Joint Provisional Liquidators

Procedural Posture

Companies Winding Up Proceedings and Ancillary Recognition/assistance Application / Hearing on Recognition and Adjournment Application; Decision to Recognise With Modifications and Adjourn Petition to 10 May 2021

Legal Issues

  1. 1 Whether Bermuda-appointed soft-touch provisional liquidators should be recognised and assisted in Hong Kong
  2. 2 Whether the winding-up petition should be adjourned to permit a restructuring and scheme of arrangement
  3. 3 Whether soft-touch provisional liquidation qualifies as a collective insolvency process permitting stays/moratoria in Hong Kong

Ratio Decidendi

The court will recognise and assist foreign soft-touch provisional liquidators to the extent recognition confirms their status under the law of incorporation and ancillary powers that flow from that status, provided Hong Kong's requirements are met; on facts the Company and JPLs established sufficient basis for recognition and a short adjournment to 10 May 2021 to pursue a restructuring by way of a scheme of arrangement, subject to modification of the terms of assistance and reservation of costs; leave to appeal was refused.

Court Disposition

Recognition and assistance granted with modifications; winding-up petition adjourned to 10 May 2021; costs reserved; leave to appeal refused

Orders

  • Adjourn the winding-up petition to 10 May 2021
  • Order for recognition and assistance granted but amended: remove reference in paragraph 2(j) to investigations and taking a forensic image of documents