Re DaFa Properties Group Limited (大發地產集團有限公司) (in liquidation) and Re YinYi Holdings (Hong Kong) Limited (垠壹香港有限公司) (in liquidation) (heard together) [2026] HKCFI 3257
At the first hearing of the applications, the learned Companies Judge, the Honourable Madam Justice Linda Chan, authorised letters of request to be issued to the Shanghai No. 3 Intermediate People’s Court in respect of DaFa Properties Group Limited (ListCo), a Cayman-incorporated company once listed on the SEHK, and its Hong Kong subsidiary YinYi Holdings (Hong Kong) Limited (the HK Subsidiary), both entities having been wound up by the Hong Kong Court on 16 October 2024.
Her Ladyship’s detailed Reasons for Judgment, as published today, contained a helpful reminder that practitioners applying for such applications are to do “their utmost to assist the courts in considering and dealing with the application” as courts cannot be expected to “trawl through the voluminous documents and identify the relevant factual matters for them”.
Thus, in furtherance of such assistance, the applicants were in the present case asked to include in the letters of request all factual matters showing the COMI of ListCo and the HK Subsidiary as identified from the supporting evidence and the skeleton submissions.
The principles on recognition and assistance of insolvency proceedings pursuant to the Cooperation Mechanism have been explained and applied in recent authorities. Working through the six relevant requirements, her Ladyship was satisfied that each of them has been fulfilled in respect of both entities.
In particular, her Ladyship was satisfied that (1) Hong Kong has been the COMI of ListCo continuously for more than 8 years and continued after commencement of liquidation; and that (2) similarly, Hong Kong has been the COMI of the HK Subsidiary since its incorporation in 2018 and continued after commencement of its liquidation. On the Mainland side, her Ladyship was also satisfied that both entities have a place of business in Shanghai, and their principal assets located in Shanghai. Moreover, her Ladyship agreed that it is necessary for the Liquidators to seek recognition and assistance from the Shanghai Court to carry out their duties and functions as liquidators in the Mainland..
Finally, her Ladyship accepted that the powers sought are conferred on and exercisable by Liquidators under the Companies (Winding-up and Miscellaneous Provisions) Ordinance (Cap. 32), drawing on specific comparisons with past precedents. The list of powers and the corresponding provisions and case authorities can be found at Annexes C and D of her Ladyship’s judgment.
Michael Lok and Charlie Liu (instructed by Kobre & Kim (HK) LLP) acted for the Liquidators.
Read the judgement here: https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=181397&currpage=T
