What Is In A Name? Provisional Liquidators, Liquidators & Ad Valorem Fees

We have previously reported that the Official Receiver retains its entitlement to ad valorem fees on the conversion of a compulsory liquidation to a creditors' voluntary winding-up (CVL).

This entitlement was challenged in the recent matter of Re MF Global Hong Kong Ltd¹ in which the Court of Appeal confirmed that ad valorem fees were payable on the conversion of the compulsory liquidations of two MF Global companies to CVLs.

The matter came before the Court of Appeal in the following manner.

The compulsory liquidations of MF Global Hong Kong Limited and MF Global Holdings HK Limited ("Companies") were converted to CVLs by orders made by the Honourable Mr. Justice Harris in October 2012 ("Orders"). The Orders provided for the appointment of the then provisional liquidators (PLs) as liquidators of the Companies and for the realisations made by the PLs up to the date of the conversion to be paid to them as liquidators "without any deduction being made in