With many years of experience assisting distressed companies our insolvency practitioners have the skill set to tackle even the most difficult problems.
Here are some of the cases we’ve handled:
- Appointed as liquidators of a shipping company with numerous charter agreements with counterparties in multiple jurisdictions. We commenced and completed numerous legal proceedings, including arbitration proceedings, being successful in all but one, resulting in significant recoveries for the benefit of creditors throughout the world.
- Appointed as provisional liquidators of a Company manufacturing high quality furniture in PRC, selling to retailers in Europe and the USA. Management was deadlocked and the Company was suffering severe cash flow difficulties resulting from an expansion of its manufacturing facility at the time of the 2008 downturn. As provisional liquidators we were able to stabilise the situation, advertise the various parts of the business for sale and, with the consent of the Court, execute a sale. The result was a saving of the majority of the Company’s jobs and a greater recovery for creditors than would have been the case in a liquidation. This was an excellent example of the use of provisional liquidation to facilitate corporate rescue in Hong Kong.
- Appointed liquidators of a Hong Kong company with a WFOE in PRC. Although the factory premises in PRC were about to be sealed, through negotiations with various parties we were able to avert its disposal by auction, find a purchaser for the subsidiary as a going concern through a share sale in Hong Kong, and generate sufficient funds to pay the preferential creditors in full and a dividend to unsecured creditors.
- As provisional liquidators and then liquidators of the Hong Kong subsidiary of a European mail order company, we continued the trading operations of the company which sourced products from numerous factories in PRC, delivering them to customers in Europe. Our ability to maintain relationships with the PRC suppliers was instrumental in ensuring a continued supply of goods to the European parent company, whilst it was searching for a buyer for its business. An innovative exit strategy resulted in a greater recovery for creditors than through the traditional compulsory liquidation route.
- We were initially appointed as provisional liquidators and subsequently as liquidators of a chain of grocery stores in Hong Kong employing more than 250 employees at more than 30 different locations. Because of the large number of creditors, (in excess of 500), we were able to apply successfully to the Court for a Regulating Order.
- Acted as provisional liquidators to facilitate the rescue of a construction company in financial difficulties. We were able to find a purchaser for the company, which had government construction licences, and to generate sufficient funds to pay the preferential creditors in full and a return to the unsecured creditors. In a liquidation there would have been no distribution to any class of creditor.
- Following our appointment as liquidators of three related trading companies, based on the information presented to the respective meetings of creditors it appeared that there was no prospect of a recovery for any class of creditors. The liquidators’ investigations resulted in a challenge to a debenture created in favour of certain connected parties. The liquidators had no funds to pursue legal action, they were successful in negotiating a settlement, which resulted in a distribution to the unsecured creditors of one of the companies.
- Assisted in the disposal of the business of a solvent company in Hong Kong, under the control of a BVI registered company, which was itself in solvent liquidation. The sale process, which we controlled, resulted in a significant return to the shareholders, greater than envisaged when the company was originally placed into liquidation.
- Appointed professional directors of an offshore company with various assets in Hong Kong, Singapore, Malaysia and United Kingdom. The offshore company is owned by a trust estate set up by a high net worth deceased individual. The directorship appointment is to segregate the trust assets held by the offshore company and the assets held by the deceased estate under a will and to dispose of the trust assets held by the offshore company.
- Two of our directors were appointed as directors of a Cayman Island Private Equity Fund. Our role was to act on behalf of the Limited Partners in safeguarding the investments of the Fund that were in danger of being dissipated; establishing improved corporate governance; and creating a situation where the Fund could continue to generate returns for the Limited Partners and offer an exit route on appropriate terms.
- Appointed receivers of the charged assets of an investment holding company in Hong Kong in April 2018. The charged assets were shares of two companies listed on the mainboard of the Stock Exchange of Hong Kong and represented in excess of 70% of the issued shares of each of the two listed companies. The receivers successfully negotiated the sale of the charged assets with various interested parties. The receivers also liaised closely with the Securities and Futures Commission and the listed companies to ensure that the provisions of the Listing Rules were fully complied with. The receivers completed both sales within four months from the date of their appointment. The charged shares were sold for an aggregate amount of approximately HK$424 million.
- Appointed by the Court as Receivers of assets being shipped through Hong Kong by an Indian company to the central bank of a South American country. The appointment was to secure a London Arbitration Award against the Indian company in respect of a debt due to a UK company. Following our appointment we were able to sere a number of shipping containers, the effect of which was to persuade the debtor company to settle the Arbitration Award.
- Appointed as the trustees in bankruptcy of a bankrupt who is a former chairman of a Bermudan company whose shares are listed on the mainboard of the Stock Exchange of Hong Kong. The bankrupt has not been cooperative and did not provide much information. In pursuit of the bankrupt’s assets, the trustees successfully obtained a recognition order in Canada and were granted a Chapter 15 recognition order in the US recognising their appointment and powers. The trustees also made a number of Rule 2004 examination proceedings in the US against relevant professional firms for the purpose of recovering assets of the bankrupt. Recognition of the trustees appointment and powers were also granted in BVI, Belize, Canada and Singapore. The trustees successfully uncovered a property in Canada which was co-owned by the bankrupt and his wife and obtained a partition and sale order in Canada to dispose of the bankrupt’s interest in the property in Canada.
- Investigating the affairs of a bankrupt, formerly a director of a listed company in Hong Kong, over a period of two years, enabled us to generate recoveries for the benefit of his creditors. These recoveries were in respect of undisclosed assets, which only came to light as a result of our investigations.
- We were instructed to assist the Canadian Trustee of an insolvent company, which owned a Wholly Foreign Owned Enterprise in PRC. The WFOE was itself insolvent, but as a result of our involvement, we were able to find a purchaser for the company. The result was a substantial return to the parent company in Canada, from what was an insolvent investment.