Rongxingda Development (BVI) Ltd

• Jurisdiction: Caribbean States
• Court: Eastern Caribbean Supreme Court
• Judge: Jack, J
• Judgment Date: 13 April 2022
• Judgment citation (vLex): [2022] ECSC J0413-2
• Year: 2022
• Docket Number: Claim No: BVIHC (COM) 2020/0008

IN THE EASTERN CARIBBEAN SUPREME COURT

IN THE HIGH COURT OF JUSTICE

(COMMERCIAL DIVISION)

Claim No: BVIHC (COM) 2020/0008

CONSOLIDATED CLAIM

Between:

Rongxingda Development (BVI) Limited

Claimant

Appearances:

Mr Peter Ferrer, Ms. Marcia McFarlane and Mr. Chai Ridgers of Harneys for the Applicant

JUDGMENT (No 2)

1 Jack, J [Ag.]: This is an application for approval of a Scheme of Arrangement. The matter was last before me on 8 ^th February, 2022, when I approved the calling of a meeting of creditors and determined that there should only be one class of creditor. That meeting was held on 3 ^rd March, 2022. 95.9 percent of creditors by value attended that meeting and 98.15 percent of those present and voting approved the Scheme of Arrangement. It Is fair to say that in those circumstances the degree of approval is overwhelming.

2 The power of the Court to approve a Scheme of Arrangement is given by section 179A of the BVI Business Companies Act 2004 provides: 1

“(1) Where a compromise or arrangement is proposed between a company and its creditors or, any class of them, or between the company and its members or any class of them, the Court may, on the application of a person specified in subsection (2) order a meeting of the creditors or class of creditors or of the members or class of members as the case may be, be summoned in such manner as the Court directs.

(2) An application under subsection (1) may be made by, (a) the company…

(3) If a majority in number representing seventy five percent in value of the creditors or class of creditors or members or class of members as the case may be, present and voting either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement if sanctioned by the Court is binding on all the creditors, or the class of creditors or the members or class of members as the case may be, and also on the company, or in the case of a company in voluntary liquidation, or in liquidation under the Insolvency Act, on the liquidator and on every person liable to contribute to the assets of the company in the event of its liquidation.”

3 I do not need to read the rest of the section. Mr. Ferrer draws my attention to the case law on this matter. There Is very little in this Territory, but this Court will apply the authorities from England where the Scheme of Arrangement system is very similar to that here. There is no doubt that the Scheme...