Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Valuation of contingent claims for voting

Legal area

Court

7 Dec 2000

RE UDL HOLDINGS LTD

Citation

RE UDL HOLDINGS LTD
Court

Court of Appeal
Case number

CACV164/2000

The learned Companies Judge rightly exercised her discretion: classification for scheme voting is determined by similarity of legal rights (not individual motives), preferential and other unsecured creditors did not have sufficiently dissimilar rights to require separate meetings, valuing contingent claims at nil for voting was a bona fide and equitable approach given uncertainty and was adequately safeguarded by proving procedures, and therefore the schemes met statutory requirements and could be sanctioned.
7 Dec 2000

Re UDL Ship Management Ltd.

Citation

Re UDL Ship Management Ltd.
Court

Court of Appeal
Case number

CACV259/2000

The court upheld the Companies Judge: classification for scheme meetings is determined by the legal rights of creditors (not their varying personal interests); preferential creditors did not constitute a separate class because their legal rights under the scheme were preserved and aligned with unsecured creditors as to excess claims; valuing an unproven contingent claim at nil for voting was a bona fide and equitable approach and did not deprive the court of jurisdiction; accordingly the schemes satisfied statutory requirements and the court properly sanctioned them.