Preserving creditor value in schemes of arrangement
In the recent decision of In the Matter of Grand Peace Group Holdings Limited, the Hong Kong court noted, obiter dicta, that practitioners should, citing Re Da Yu Financial Holdings Limited, be cognisant that parallel schemes of arrangement in both the company’s place of incorporation and Hong Kong, where the offshore company is listed in Hong Kong, would seem generally to be unnecessary. Parallel schemes could result in an escalation in legal fees which is not in the interests of unsecured creditors.