Court of First Instance laid down principles for sanctioning parallel restructuring schemes

17 October 2019 – The Court of First Instance laid down the crucial principles involved in a listed company’s parallel restructuring schemes (“backdoor listing”) in both Hong Kong and the Cayman Islands in Re Da Yu Financial Holdings Limited [2019] HKCFI 253. The Court also gave guidance as to the proper approach in assessing the level of restructuring costs. Tony Ko appeared for the contributory, a distressed fund which invested in the listed company. The Judgment of the Court of First Instance can be found here.