Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Explanatory statement

Legal area

Court

11 Nov 2022

RE UNITY GROUP HOLDINGS INTERNATIONAL LTD (formerly known as SYNERGY GROUP HOLDINGS INTERNATIONAL LTD)

Citation

[2022] HKCFI 3419
Court

Court of First Instance
Case number

HCMP869/2022

The court sanctioned the scheme because it is a bona fide debt restructuring for a permissible purpose, the proposed class of unsecured creditors could properly vote as a single class, the Convening Order and voting majorities complied with the Companies Ordinance, the explanatory statement furnished adequate information under section 671(3), the discretionary 'intelligent and honest man' test was satisfied given materially better recoveries under the scheme than in liquidation, and the scheme is likely to be effective internationally as the Claims are governed by Hong Kong law.
19 Jan 2022

RE DA SEN HOLDINGS GROUP LTD

Citation

[2022] HKCFI 185
Court

Court of First Instance
Case number

HCMP1615/2021

The scheme was sanctioned because (1) it is a bona fide restructuring for a permissible purpose, (2) Scheme Creditors formed a single class with sufficiently similar rights, (3) the meeting was duly convened and met statutory majorities under s674, (4) the explanatory statement complied with s671(3), (5) the consent fee did not fracture the class, and (6) all Scheme Claims are governed by Hong Kong law so the scheme will be effective; accordingly the court exercised its discretion to sanction under s673.