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Re Smi Holdings Group Ltd (Formerly Known As Smi Corporation Limited)

Judgment Cited authorities 1 Cited in 7 Precedent Map Related
Vincent
Judgment Date07 May 2020
Neutral Citation[2020] HKCFI 824
Year2020
Judgement NumberHCCW108/2019
Subject MatterCompanies Winding-up Proceedings
CourtCourt of First Instance (Hong Kong)
HCCW108A/2019 RE SMI HOLDINGS GROUP LTD (formerly known as SMI Corporation Limited)

HCCW 108/2019

[2020] HKCFI 824

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP PROCEEDINGS NO 108 OF 2019

________________________

IN THE MATTER of SMI Holdings Group Limited (formerly known as SMI Corporation Limited)
and
IN THE MATTER of section 327 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, (Cap 32) of the Laws of the Hong Kong Special Administrative Region

________________________

Before: Hon Harris J in Court
Date of Hearing: 7 May 2020
Date of Decision: 7 May 2020

________________________

D E C I S I O N

________________________


1. On the 11 April 2019, HSBC issued a winding-up petition against the Company, SMI Holdings Group Limited (“Company”). In August 2019, Television Broadcasts Limited (“TVB”) was substituted for HSBC. The debt relied on by TVB arises under a series of bonds. As at July 2019, TVB was owed in excess of US$110 million. The debt is not disputed. It seems clear even from the Company’s own evidence that the Company is insolvent.

2. The Company is listed on the main board of The Stock Exchange of Hong Kong Limited. As is common in the case of a listed company, it is incorporated in an offshore jurisdiction; in the present case Bermuda. I am satisfied that there is sufficient connection between the Company and Hong Kong to justify the Court exercising the power that it is not disputed the Companies Court has to wind up the Company.

3. The Company is a holding company holding indirect interests in a substantial group of cinemas and theatres and associated businesses in the Mainland. It would appear from the rather limited evidence that has been filed by the Company that it is attempting to restructure the debt of the businesses in the Mainland. Presumably as part of this process it managed to reach an agreement with HSBC to restructure the debt owed to the bank and more recently an agreement with another creditor, Haitong International Finance Products Limited (“Hai Tong”), which also held bonds issued by the Company.

4. As I have mentioned, the Company has filed limited evidence about it and its subsidiaries, financial position. I have before me the 3rd affirmation of Kenneth Jack Shang which was made at the end of November 2019. Mr Shang explains that the group operates 336 cinemas in the Mainland out of which, presumably in November 2019, 201 were in operation. Mr Shang then proceeds to describe in very general terms negotiations in which the Company, it would appear through its subsidiaries, is involved to restructure its debt and certain of what is suggested are valuable...

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6 cases
  • Re Master Glory Group Ltd
    • Hong Kong
    • Court of First Instance (Hong Kong)
    • 1 June 2020
    ...Tech Limited Mr Brian Chok, instructed by Official Receiver’s Office, for the Official Receiver [1] Re SMI Holdings Group Limited [2020] HKCFI 824; Re Chase On Development Limited [2020] HKCFI 629. ...
  • Re Master Glory Group Ltd
    • Hong Kong
    • Court of First Instance (Hong Kong)
    • 1 June 2020
    ...Tech Limited Mr Brian Chok, instructed by Official Receiver’s Office, for the Official Receiver [1] Re SMI Holdings Group Limited [2020] HKCFI 824; Re Chase On Development Limited [2020] HKCFI 629. ...
  • Re Master Glory Group Ltd
    • Hong Kong
    • Court of First Instance (Hong Kong)
    • 1 June 2020
    ...Tech Limited Mr Brian Chok, instructed by Official Receiver’s Office, for the Official Receiver [1] Re SMI Holdings Group Limited [2020] HKCFI 824; Re Chase On Development Limited [2020] HKCFI 629. ...
  • Re Lerthai Group Ltd
    • Hong Kong
    • Court of First Instance (Hong Kong)
    • 22 January 2021
    ...for the opposing creditor (China Railway Urban Construction Co Ltd), was excused The attendance of the Official Receiver was excused [1] [2020] HKCFI 824. [2] [2020] HKCFI [3] [2020] HKCFI 2940. [4] 90 Nine Limited v Luxury Rentals NZ Limited [2019] NZCA 424, [12]. [5]...
    • Request a trial to view additional results
1 firm's commentaries
  • Covering Ears To Steal Bells: Ignoring Insolvency At Risk Of Liquidation
    • Cayman Islands
    • Mondaq Cayman Islands
    • 23 October 2020
    ...restructuring proposal that had been presented to creditors, or support for the proposed adjournment. In Re SMI Holdings Group Ltd [2020] HKCFI 824, Harris J also wound up the (Bermuda-incorporated) Company immediately, expressing trenchant views regarding the Company's 'closed-ears' approa......

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