Hong Kong Case Law

2 Feb 1999

RE SALLY AW SIAN

Citation

RE SALLY AW SIAN

Court

Court of First Instance

Case number

HCB59/1999

The court refused to make a validation order under section 42 because Sunrise failed to discharge the burden to rebut the presumption that the disposition would prejudice unsecured creditors; independent valuation (CLSA) indicated the Lazard Proposal would yield materially greater returns to unsecured creditors and the Sunrise valuation was flawed in its treatment of the Lazard loan, the Option and the residual share valuation, so allowing the Sunrise Transaction would prejudice unsecured creditors.

• Validation order under section 42 bankruptcy ordinance
• Disposition of property after presentation of petition
• Exercise of court discretion
• Protection of unsecured creditors
• Comparative valuation of competing transactions
• Takeovers code and mandatory general offer