Hong Kong Case Law: Decisions & Judgments

Topic

Disputed claims

Legal area

Court

18 Apr 2000

Re Exact Profit Ltd.

Citation

Re Exact Profit Ltd.
Court

Court of First Instance
Case number

HCMP432/2000

The court applied the rights-based test for class constitution: where legal rights are not dissimilar and no confiscation or injustice results, internal creditors may vote as part of the same class; disputed claims may be valued at zero for voting if that valuation was arrived at in good faith following review; given substantial independent creditor support and absence of unfair prejudice, the court will exercise its discretion to sanction the schemes (subject to conditions).
18 Apr 2000

Re S.K. LUK Construction Co. Ltd.

Citation

Re S.K. LUK Construction Co. Ltd.
Court

Court of First Instance
Case number

HCMP426/2000

Applying the rights test, the court found no dissimilarity of legal rights sufficient to require separate classes; the inclusion of internal creditors did not produce confiscation or injustice; independent creditors showed substantial support and disclosure and procedural irregularities were not such as to vitiate the meetings; accordingly the court exercised its discretion to sanction all 25 schemes, subject to the stated condition precedent.
18 Apr 2000

Re UDL Marine Operation Ltd.

Citation

Re UDL Marine Operation Ltd.
Court

Court of First Instance
Case number

HCMP416/2000

The court applied the rights-based test for class determination and concluded that including internal creditors did not produce confiscation or injustice, the meetings were representative, votes (after necessary adjustments) met the statutory majority, disclosure was not so deficient as to have materially affected voting, technical irregularities were waivable, and therefore the 25 Schemes of Arrangement should be sanctioned (subject to the stated condition precedent).
18 Apr 2000

Re Keen Yield Investment Ltd.

Citation

Re Keen Yield Investment Ltd.
Court

Court of First Instance
Case number

HCMP427/2000

The court applied the rights test for class determination, concluded internal creditors’ votes did not render meetings unrepresentative or produce confiscation or injustice, found disputed claims valued at HK$0 were reasonably assessed and did not bar exclusion from voting, waived technical irregularities, and exercised its discretion to sanction the 25 Schemes as fair and just, conditional on Stock Exchange approval by the stated date.
18 Apr 2000

Re UDL Investment Ltd.

Citation

Re UDL Investment Ltd.
Court

Court of First Instance
Case number

HCMP423/2000

The court applied the rights-based test for class composition, found no confiscation or injustice from including internal creditors or from valuing disputed claims at zero where valuation was made in good faith, concluded that independent creditor support was sufficient (after adjustments) and that technical irregularities should be waived; accordingly the court sanctioned the 25 schemes subject to the stated condition precedent (Stock Exchange approval).
18 Apr 2000

Re East Coast Towing Ltd.

Citation

Re East Coast Towing Ltd.
Court

Court of First Instance
Case number

HCMP412/2000

The court applied the rights test for classing creditors, rejected objections that internal creditors invalidated the meetings because their legal rights were not dissimilar and preferential rights were preserved; disputed claims properly valued and excluded for voting where assessed at zero in good faith; substantial independent creditor support existed and technical irregularities were waivable; accordingly the court sanctioned the 25 schemes subject to the stated condition precedent.
18 Apr 2000

Re UDL Civil Contractors Ltd.

Citation

Re UDL Civil Contractors Ltd.
Court

Court of First Instance
Case number

HCMP418/2000

The court applied the rights test for class constitution, found no confiscation or injustice in allowing internal creditors to vote as part of the same class, concluded independent creditors provided substantial support, held disputed claims valued at zero in good faith need not be allowed to vote for full amounts, exercised discretion to waive technical irregularities, and therefore sanctioned all 25 schemes (subject to stated conditions).
18 Apr 2000

Re UDL E & M (BVI) Ltd.

Citation

Re UDL E & M (BVI) Ltd.
Court

Court of First Instance
Case number

HCMP424/2000

The court applied the rights-based test for class composition and held that internal creditors (including subsidiaries) may vote in the same class where their legal rights are not so dissimilar as to make consultation on common interest impossible; disputed creditors whose claims were assessed in good faith at HK$0 may be excluded from voting; the meetings were not unrepresentative and technical irregularities were waived. Accordingly the court sanctioned the 25 Schemes, conditional on fulfillment of the Stock Exchange approval requirement.
18 Apr 2000

Re UDL Dredging Ltd.

Citation

Re UDL Dredging Ltd.
Court

Court of First Instance
Case number

HCMP425/2000

The court applied the rights‑based test for class constitution, concluded internal creditors did not have legally dissimilar rights that would make joint meetings impossible or unjust, found disputed claims had been valued in good faith and could be excluded for voting, held technical irregularities were waivable, and exercised its discretion to sanction the 25 identical schemes because there was substantial independent creditor support and no demonstration of confiscation or unfairness; sanction granted subject to fulfillment of the Stock Exchange approval condition.
18 Apr 2000

Re Econo Plant Hire Co. Ltd.

Citation

Re Econo Plant Hire Co. Ltd.
Court

Court of First Instance
Case number

HCMP411/2000

The court applied the rights test for class composition and concluded internal creditors did not possess dissimilar legal rights that would make consultation impossible; disputed claims had been valued in good faith and could be excluded for voting; technical irregularities were waivable and independent creditors provided substantial support; therefore the court exercised its discretion to sanction the 25 Schemes subject to conditions.