Financial Secretary Chen Maobo earlier requested the High Court to order the winding up of Next Media Co., Ltd. in accordance with the Companies Ordinance and asked the court to appoint a provisional liquidator. The High Court Judge Chen Jingfen approved the submission today (15th). Application.
She also gave an explanation in the afternoon, saying that according to the information from the Financial Secretary, Next Media has been in a situation of insolvency so far, and after investigation, there are also problematic transactions involved. It is a public interest and it is urgent to appoint temporary temporary The liquidator handles matters.
Petitioner Chen Maobo, Financial Secretary, Next Media Co., Ltd. (hereinafter referred to as Next Media).
Investigation found that Next Media was involved in multiple problematic transactions
The judge revealed in the verdict that Next Media currently holds a number of assets, including 70 million yuan in cash.
The only media that did not owe money to the accounts, its net loss exceeded 240 million, of which about 120 million was owed to local employees.
In addition, the Financial Secretary appointed an inspector to investigate Next Media and found a number of problematic transactions, including repayment of 150 million yuan to founder Li Zhiying, and permission to use Next Media’s resources for Li’s private company.
Has been in a vacuum since September this year
The judge agreed that there is prima facie evidence that Next Media should be wound up in the public interest, and cited a number of reasons, including: Since September this year, its management has been in a vacuum. The company has no directors to handle affairs and no evidence. The display situation will change.
Appointing a liquidator for Next Media can protect the company’s assets and thereby protect the interests of shareholders and creditors.
After the liquidator is appointed, the investigation by the supervisory authority can be handled.
The judge also mentioned that Next Media had issued an announcement in May this year, stating that the company's funds at the time could still maintain the company's operation for at least 18 months.
After the company resumed trading, the trading volume increased significantly and the stock price also rose sharply.
The announcement did not mention that Next Media had repaid 150 million yuan to Li Ying.
The judge stated that the situation was extremely serious.
It is necessary to appoint a provisional liquidator
In addition, Next Media currently still has a printing business in Hong Kong and a media business in Taiwan.
However, the judge pointed out that due to the resignation of employees, it is difficult for Hong Kong's business to continue, while Taiwan's business is selling.
Appointing a liquidator can ensure that the business is sold at the best price.
The judge recognized the urgency of appointing provisional liquidators to keep the company's accounts and deal with the litigation involved, and agreed to appoint Gu Zhixin and Xu Zichao of Ernst & Young Corporate Financial Services as provisional liquidators of Next Media.
Winding-up hearing will be held in December
Next Media’s winding-up case will be heard in the High Court on December 15 this year.
Senior Counsel Yu Ruohai spoke on behalf of the petitioner this morning and said that there are multiple reasons to believe that the court should appoint a provisional liquidator for Next Media, including the resignation of all directors of Next Media.
In addition, Next Media is currently under investigation and a provisional liquidator is appointed to assist in the investigation.
After hearing the submissions, the judge immediately appointed two people as provisional liquidators of Next Media this morning.
Next Media Limited did not have a representative to attend the hearing this morning.
Case Number: HCCW 359/2021
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