Hong Kong Case Law: Decisions & Judgments

Topic

Creditor compromise

Legal area

Court

19 Sept 2019

RE UNION ASIA ENTERPRISE HOLDINGS LTD

Citation

[2019] HKCFI 2349
Court

Court of First Instance
Case number

HCMP1093/2018

The court sanctioned the scheme because statutory requirements were met, the single class of creditors was fairly represented, the majority acted bona fide, the chairman was justified to reject disputed votes where identity was uncertain, the scheme provided a materially better return than liquidation, and there was sufficient connection with Hong Kong to exercise jurisdiction.
24 Aug 2018

RE HONG KONG MERCANTILE EXCHANGE LTD

Citation

[2018] HKCFI 1986
Court

Court of First Instance
Case number

HCCW10/2014

Because the company's unsecured liabilities were compromised by a scheme of arrangement and the delay in completion had been resolved, the court found the established criteria for granting a permanent stay and discharging the liquidators were met and therefore ordered the stay and discharge.
21 Nov 2006

RE HONG KONG PHARMACEUTICAL HOLDINGS LTD

Citation

RE HONG KONG PHARMACEUTICAL HOLDINGS LTD
Court

Court of First Instance
Case number

HCCW1018/2004

The court sanctioned the revised scheme because the new scheme meeting was properly convened with clear notice of the 40% minimum return condition, the class of creditors was properly constituted and informed, adequate publicity and claim notification measures had been taken such that creditors were not prejudiced by the abridged timetable or one-day cut-off, investor undertakings and funds made the 40% minimum return likely (approx. 40.2%), the scheme compared favourably with likely winding-up returns, and Bermuda sanction had been granted; accordingly the court had jurisdiction to sanction…
10 Dec 2003

RE FUJIAN GROUP LTD

Citation

RE FUJIAN GROUP LTD
Court

Court of First Instance
Case number

HCCW68/2003

The court sanctioned the scheme because the statutory majorities under s166 were achieved, the explanatory materials and notice were adequate, creditors were better off under the scheme than in liquidation, shareholder approvals and investor undertakings were in place; the capital reduction was confirmed because it was properly explained, equitable and creditors' rights were safeguarded; the winding-up petition was dismissed conditionally with clear restoration safeguards and cost allocation.
10 Dec 2003

RE FUJIAN GROUP LTD

Citation

RE FUJIAN GROUP LTD
Court

Court of First Instance
Case number

HCMP5166/2003

The court sanctioned the scheme because the statutory creditor majority was achieved (99.38% in value; 17 of 19 voting), the restructuring was the only practicable rescue likely to produce a better and quicker return to creditors, shareholders had approved the capital reduction for proper purposes and creditors' rights were safeguarded; accordingly the reduction of capital was confirmed and the winding-up petition was dismissed conditionally upon completion and filing of the prescribed closing notice.

Hong Kong Case Law

RE UNION ASIA ENTERPRISE HOLDINGS LTD

RE HONG KONG MERCANTILE EXCHANGE LTD

RE HONG KONG PHARMACEUTICAL HOLDINGS LTD

RE FUJIAN GROUP LTD

RE FUJIAN GROUP LTD