Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Class voting and creditor classification
  • 18 Apr 2000

    Re UDL Holdings Ltd.

    Citation
    Re UDL Holdings Ltd.
    Court
    Court of First Instance
    Case number
    HCMP436/1999

    The court applied the rights‑based test for class composition and held that internal (inter‑company) creditors could be included in the single class where their legal rights were not dissimilar and no confiscation or injustice would result; the preferential and secured rights were preserved and disputed claims valued in good faith could be excluded from voting; the voting majorities were representative and substantial independent support existed; accordingly the court exercised its discretion to sanction the 25 schemes, waiving technical irregularities and subjecting sanction to the condition…