Introduction

In the recent case of Re Cheung Hing Chik also known as Charles H.C. Cheung, the debtor [2021] HKCA 981, the Court of Appeal clarified that in determining whether a bankruptcy order should be rescinded, the court is entitled to take into account facts both before or after the bankruptcy order. To succeed, an applicant for rescission has to show exceptional circumstances, involving a material difference to what was before the court earlier, to justify the overturning of the bankruptcy order.

Background

簡介

中華人民共和國最高人民法院（「最高人民法院」）與香港特別行政區政府於2021年5月14日簽訂了《最高人民法院與香港特別行政區政府關於內地與香港特別行政區法院相互認可和協助破產程序的會談紀要》。在試點計劃下，香港的清盤人可向內地試點地區的有關中級人民法院申請認可香港的清盤程序；同樣地，內地的破產管理人可向香港高等法院申請認可內地的破產程序（「試點計劃」）。最近在Re China All Access (Holdings) Ltd [2021] HKCFI 1842一案中，香港法院首次考慮這項近期發展及試點計劃。

背景

简介

最近在Re Cheung Hing Chik also known as Charles H.C. Cheung, the debtor [2021] HKCA 981一案中，上诉法院澄清，在决定是否应撤销破产令时，法院既可考虑在破产令发出之前的事实，也可考虑在破产令发出之后的事实。要成功申请撤销破产令，申请人须证明涉及与先前法院席前证据有重大差异的特殊情况，作为推翻破产令的充分理据。

背景

本案是就一项于2020年8月3日发出的破产令（「该破产令」）提出的上诉。呈请人是一间公司，其银行帐户被破产人偷去或挪用了749,000美元。于2020年2月27日，呈请人就上述金额向破产人发出法定要求偿债书，但不获还款。在2020年8月3日进行的呈请聆讯上，破产人口头上表示他能够偿还该债务，因为：

1. 他可将其于张庆植会计师行有限公司的50% 权益出售，估计约值600万元；及
2. 他可能会收到若干其他资金。

法官不信纳，并认为没有证据显示破产人能偿还债务，因此发出了该破产令。

Some further important guidance by Zacaroli J in the recent judgment on Hurricane Energy. In that case, the company (with the support of the company's ad hoc committee of bond holders who were going to take 95% of the equity under the plan in return for certain adjustments to the bonds) sought to cram down the class of dissenting shareholders through a restructuring plan ("plan").

Introduction

The court found that it could not sanction the scheme, despite the requisite majority of creditors having voted in favour of it. The intervention by the FCA at the sanction hearing marks an interesting development in assessing the extent to which the regulator's views will be aired and considered.

This case is a reminder to both debtors and nominees that corporate law formalities must be respected and that the insolvency lens may affect the treatment of connected party transactions in future valuations and restructuring processes.

The Regis landlords made multiple complaints regarding the disclosure and valuation of connected party transactions and the large uniform discount applied to multiple landlords for voting purposes (75%). The only argument found in their favour was the mistreatment of one of the intercompany loans.

Key takeaways -

Introduction

An important judgment by Snowden J yesterday, sanctioning Virgin Active's restructuring plans after a contested sanction hearing, which included a cram down of several landlord classes that did not approve the plans by the requisite majorities in those classes.

The decision is important as among the many points covered, it considers certain key issues including:

An important judgment handed down by Zacaroli J yesterday in the New Look CVA challenge. The New Look CVA proposal involved treating landlords of different leases in various different ways, including (i) resetting rent to a turnover percentage (ii) keeping rent intact and (iii) reducing rent to nil. Landlords are given the flexibility to terminate leases within a prescribed period where they identify a tenant prepared to pay better rent (important to ensure the landlord's proprietary right is not interfered with). In a CVA, all unsecured creditors are invited to vote.