KPMG’s Edward Middleton, Wing Sze Tiffany Wong and Kris Beighton have been appointed as Joint Provisional Liquidators by the Grand Court of the Cayman Islands (“Grand Court”) over Ambow Education Holding Ltd. (“Ambow” or the “Company” NYSE: AMBO).
Ambow is a leading national provider of educational and career enhancement services in The People’s Republic of China. Upon the making of the Order on June 7, 2013, the powers of the directors of the Company ceased, except that they may cause the Company to apply to the Grand Court to discharge the Joint Provisional Liquidators upon proper notice.
Tiffany Wong, a partner at KPMG China and one of the Joint Provisional Liquidators, said: “The provisional liquidation provides an opportunity for all stakeholders to take stock of the current position and we will be working hard with those stakeholders to resolve the company’s current difficulties.”
The Joint Provisional Liquidators are authorized and empowered by the Grand Court to take all necessary actions to protect the Company’s assets. The powers of the Joint Provisional Liquidators include, among other things, the power to defend any actions or legal proceedings on behalf the Company, to investigate and conduct the affairs of the Company, to conduct equity or debt financings and issue securities, to engage staff and advisors to assist them in the performance of their functions, to take possession of or collect the Company’s properties, to execute all agreements and documents on behalf of the Company, to convene meetings of creditors and contributors and to take necessary steps to ensure the good management and security of the assets and undertakings of the Company’s operating subsidiaries and affiliates.
The Joint Provisional Liquidators are required to file a report to the Grand Court within 28 days of the Order.
The Joint Provisional Liquidators confirm that at the current time, the Company is expected to continue operating its businesses. Depending on a number of factors, at any future hearings the Grand Court may (i) dismiss the petition and hand control back to the directors; or (ii) adjourn the petition to allow the Joint Provisional Liquidators to continue in office; or (iii) make a winding up order; or (iv) make any other order as it sees fit.
The Order further provides that no new lawsuit or judicial proceeding may be undertaken against the Company, unless authorized by the Grand Court.
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