Hong Kong Case Law: Decisions & Judgments

Topic

Soft-touch provisional liquidation

Legal area

Court

18 May 2021

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF VICTORY CITY INTERNATIONAL HOLDINGS LTD

Citation

[2021] HKCFI 1370
Court

Court of First Instance
Case number

HCMP611/2021

The Court granted recognition and assistance to the joint and several provisional liquidators appointed in Bermuda because the Bermudian appointment was valid and the applicants were appropriate to be recognised in Hong Kong; notwithstanding concerns about the misuse of soft-touch provisional liquidation, those concerns did not outweigh the basis for recognition but justify heightened judicial scrutiny in future similar cases.
11 May 2021

RE CHINA BOZZA DEVELOPMENT HOLDINGS LTD

Citation

[2021] HKCFI 1235
Court

Court of First Instance
Case number

HCMP172/2021

The court recognised the Cayman-appointed joint provisional liquidators under principles of private international law but declined to grant broad active assistance because the evidence showed inadequate legal advice, no demonstrable restructuring plan, and failure to prioritise creditors' interests, while preserving liberty to apply if justification is shown.
10 May 2021

RE PING AN SECURITIES GROUP (HOLDINGS) LTD

Citation

[2021] HKCFI 1394
Court

Court of First Instance
Case number

HCCW217/2020

Because the provisional liquidators failed to keep the petitioner properly informed and court supervision was impeded while the petitioner faced a substantial claim and the proposed restructuring offered only an approximately 2.75% return, the Court exercised its discretion to make the normal winding up order and ordered the Official Receiver to be the first provisional liquidator in Hong Kong.
12 Mar 2021

RE PING AN SECURITIES GROUP (HOLDINGS) LTD

Citation

[2021] HKCFI 651
Court

Court of First Instance
Case number

HCCW217/2020

The court recognised and granted assistance to the Bermuda-appointed soft-touch provisional liquidators to the extent consistent with their status under Bermuda law and Hong Kong private international law, and adjourned the winding-up petition to 10 May 2021 because the Company demonstrated a realistic and time-limited restructuring proposal (subscription by Mr Cheung, creditor engagement and timetable tied to HKEX black-out ending) sufficient to satisfy the criteria for adjournment; however the recognition order was limited by removing investigatory powers sought and amending proposed terms,…
12 Mar 2021

RE THE JOINT PROVISIONAL LIQUIDATORS OF PING AN SECURITIES GROUP (HOLDINGS) LIMITED (PROVISIONAL LIQUIDATORS APPOINTED) (FOR RESTRUCTURING PURPOSES)

Citation

[2021] HKCFI 651
Court

Court of First Instance
Case number

HCMP1810/2020

The court will recognise and assist foreign soft-touch provisional liquidators to the extent recognition confirms their status under the law of incorporation and ancillary powers that flow from that status, provided Hong Kong's requirements are met; on facts the Company and JPLs established sufficient basis for recognition and a short adjournment to 10 May 2021 to pursue a restructuring by way of a scheme of arrangement, subject to modification of the terms of assistance and reservation of costs; leave to appeal was refused.
11 Mar 2021

LI YIQING v. LAMTEX HOLDINGS LTD

Citation

[2021] HKCFI 622
Court

Court of First Instance
Case number

HCCW263/2020

The court granted the winding up order in Hong Kong because the Company’s COMI was in Hong Kong, creditors (including the petitioner) supported immediate winding up, the JPLs’ restructuring proposals were insubstantial and not a persuasive discretionary ground to adjourn, and there was no basis to displace Hong Kong proceedings in favour of Bermuda soft-touch provisional liquidation.
21 May 2020

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF CHINA OIL GANGRAN ENERGY GROUP HOLDINGS LIMITED (IN PROVISIONAL LIQUIDATION IN THE CAYMAN ISLANDS)

Citation

[2020] HKCFI 825
Court

Court of First Instance
Case number

HCMP367/2020

The Court exercised its inherent and common-law jurisdiction to recognise the Cayman soft-touch provisional liquidation and the appointment of the joint provisional liquidators and to grant the specific restructuring and ancillary powers sought because (1) established Hong Kong and foreign authorities support recognition of comparable foreign insolvency proceedings and office-holders; (2) the proposed powers were confined to restructuring and protecting assets and tracked the letter of request; (3) there was no objection and no public policy reason to refuse assistance; and (4) the applicatio…

Hong Kong Case Law

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF VICTORY CITY INTERNATIONAL HOLDINGS LTD

RE CHINA BOZZA DEVELOPMENT HOLDINGS LTD

RE PING AN SECURITIES GROUP (HOLDINGS) LTD

RE PING AN SECURITIES GROUP (HOLDINGS) LTD

RE THE JOINT PROVISIONAL LIQUIDATORS OF PING AN SECURITIES GROUP (HOLDINGS) LIMITED (PROVISIONAL LIQUIDATORS APPOINTED) (FOR RESTRUCTURING PURPOSES)

LI YIQING v. LAMTEX HOLDINGS LTD

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF CHINA OIL GANGRAN ENERGY GROUP HOLDINGS LIMITED (IN PROVISIONAL LIQUIDATION IN THE CAYMAN ISLANDS)