31 Oct 2003
RE CHIME CORPORATION LTD
- Citation
- RE CHIME CORPORATION LTD
- Court
- Court of First Instance
- Case number
- HCMP4146/2001
The court accepted substitution of the BOC HK$520m guarantee with a multi-currency cash deposit equal to 105% of HK$520m held in jointly operated interest bearing accounts because (a) the purpose of the security was to secure dividends payable by Chime which would be returned if the allotment were set aside, (b) existing protective undertakings made it improbable the funds originated from Chime or CAL so a personal undertaking was unnecessary, and (c) the proposed 105% buffer and a replenishment/drawdown regime adequately address exchange rate risk, making payment into court unnecessary.