Bypassing Legend

In a first in Hong Kong, the Companies Court has recently sanctioned a creditors' scheme of arrangement proposed by a Bermuda-incorporated, Hong Kong-listed company by approving an alternative process pursued by the company and its provisional liquidators so as to overcome the constraints in Re Legend International Resorts Ltd [2006] 2 HKLRD 192; that in Hong Kong, provisional liquidators cannot be appointed for the sole purpose of restructuring a company.

In the matter of Z-Obee Holdings Limited (Provisional Liquidators appointed in Bermuda) (the "Company"), a winding-up petition was initially presented in Hong Kong for the winding-up of the Company and on the same day, a summons was filed seeking the appointment of provisional liquidators. While provisional liquidators were initially appointed by the Companies Court so as to preserve the assets of the Company, once these duties had been discharged, the primary matter remaining for consideration by the provisional