In the recent decision of Moody Technology Holdings
Ltd1, the Hong Kong Court of First Instance (the
"Hong Kong Court") provides useful commentary on
the jurisdiction to modify a scheme of arrangement after court
sanction – a matter on which there is no previous Hong Kong
law authority.
Background
Moody Technology Holdings Ltd (Provisional Liquidators appointed
for Restructuring Purposes) (the
"Company")2 and its
subsidiaries (the "Group") are
primarily engaged in the design, manufacturing and sales of
fabrics, and the trading of shoes and clothes in the People's
Republic of China, Hong Kong, and Korea.
Between 2014 and 2019, the Company issued bonds for the purposes
of funding the construction of factories, developing the
Group's fabrics business and for working capital. Due to
financial issues which ultimately caused the Company's bonds to
be accelerated3, in November 2020, the Company together
with Provisional Liquidators4 formulated a scheme
comprising
