This is an update to clients and creditors following our statement on 27 April 2012.
On 20 March 2012, the Provisional Liquidators (‘PLs’) made an application to the Hong Kong Court (‘the Court’) for the Court’s approval of a Second Interim Distribution to Qualifying Clients of MFG-HK. The application included a request that the PLs be authorised to pool all Client Money for the purposes of future distributions and was heard on Friday, 4 May 2012.
In the two days leading up to the hearing, MFG Singapore (‘MFGS’), as a client of MFG-HK, informed the PLs that they had concerns about the orders being sought from the Court, insofar as the orders may affect MFGS’s rights. Through its Hong Kong lawyers, MFGS appeared at the hearing to ventilate these concerns.
As a result, the Court has adjourned the hearing of the application to 15 May 2012 to enable the PLs and MFGS to discuss and attempt to resolve the issues raised by MFGS.
As such, the second interim distribution order was not granted at today’s hearing. While the PLs regret that this will cause a short delay in their plan to make a second interim distribution to Qualifying Clients of MFG-HK, they are hopeful this issue can be resolved quickly, and will keep clients informed of developments.
On 4 May 2012, the PLs filed with the Court their reports on the outcome of the first meetings of contributories and creditors together with the accompanying applications for:
- the PLs, Patrick Cowley, Fergal Thomas Power and Lui Yee Man continue in office as the Joint and Several Liquidators of the Companies.
- a Committee of Inspection ('COI') be appointed to act with the liquidators.
- the liquidation of the Companies' be conducted as a creditors' voluntary winding up.
The applications to the Court also include the names of the creditors nominated to be on the respective COI’s of MFG-HK and MFH, and the outcome of the voting on the resolutions. The Court will decide, for each Company, how many creditors will be on the COI and also which of the creditors will form the COI.
For reasons of costs and convenience, the PLs have requested that all the applications in relation to the first meetings be heard together. His Honour Justice Harris is currently considering that request and the PLs will provide an update once a hearing date or dates have been fixed.
As mentioned in the last update, the reconciliation process in respect of clients’ North American positions is ongoing. This is being undertaken in tandem while we continue to seek the final or verified transfer and close-out prices from the special administrators of MFG UK (for the positions on the LME) and the provisional liquidators of MFG Singapore, which remain outstanding.
Clients of MFG-HK are encouraged to contact Ms Jasmine Lai on +852 2913 2539 or email email@example.com with any enquires.
For and on behalf of MFG-HK (In Liquidation) and MFH (In Liquidation)
Joint and Several Provisional Liquidator
(The Joint and Several Provisional Liquidators act as agents of MFG-HK and MFH without personal liability)