Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Non-provable claims

Legal area

Court

14 Feb 2017

RE LEHMAN BROTHERS FUTURES ASIA LTD (In Liquidation)

Citation

RE LEHMAN BROTHERS FUTURES ASIA LTD (In Liquidation)
Court

Court of First Instance
Case number

HCMP2264/2016

The court sanctioned the three Schemes because the statutory requirements were met: proper procedure and notice, explanatory statements sufficiently explained complex issues, the single classes were properly constituted given creditors' common commercial interest in avoiding litigation, and each Scheme obtained the requisite majorities; accordingly the compromise was one a reasonable creditor could accept to resolve PLI, non-provable claim and priority uncertainties and to expedite distributions.
14 Feb 2017

RE LEHMAN BROTHERS ASIA LTD (In Liquidation)

Citation

RE LEHMAN BROTHERS ASIA LTD (In Liquidation)
Court

Court of First Instance
Case number

HCMP2265/2016

The court sanctioned each scheme because the statutory requirements were satisfied (proper notice, adequate explanatory statements, and statutory majorities voted in favour), a single class was justified by the creditors' common interest in avoiding expensive and uncertain litigation, and the scheme terms (including specified PLI methodology and a 50% discount on non-provable claims) were ones that an intelligent and honest creditor could reasonably approve.