Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Related‑party voting
  • 30 Jun 2014

    RE KB (ASIA) LTD

    Citation
    RE KB (ASIA) LTD
    Court
    Court of First Instance
    Case number
    HCMP307/2013

    The Scheme was not sanctioned because the court was not satisfied that the classes were properly constituted: Rak Industries Limited, as holder of a floating charge over receivables, had legal rights materially dissimilar to unsecured creditors and should not have been treated as part of the unsecured class; additionally related/family creditors had collateral interests so their votes should be discounted; as a result a statutory majority was not achieved and the Scheme failed.