Pryor Cashman Partner Richard Levy, Jr., a member of the Bankruptcy, Reorganization + Creditors' Rights, Litigation, Banking + Finance, and Investment Management Groups, was engaged by Interlaw client Lux Aeterna Global Fund SPC ("Lux"), a Cayman Islands investment company, to render an opinion as an expert witness in a Hong Kong involuntary liquidation proceeding filed against Leading Holdings Group Limited ("LHG"), another Cayman entity.
The action arose from LHG's default in payment of amounts due under an issue of bonds publicly traded on the Hong Kong exchange. LHG, supported by an opinion from its own expert witness, moved to dismiss Lux's petition on the ground that Lux, as a beneficial holder of the bonds, lacked standing to start the action under the indenture – governed by New York law – that restricted certain remedies only to a registered holder of the bonds. Rich opined that, measured by applicable law, the language of the indenture did not bar the pursuit of involuntary bankruptcy or insolvency relief against LHG.
The Hong Kong Court of First Instance will take the motion under advisement.
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