Jimmy Lai, the founder of Next Digital, and three related companies of “Apple Daily” are charged with “conspiracy to collude with foreign forces” and other crimes, with the case currently under trial. In December 2021, Next Digital Limited was officially ordered by the High Court to be liquidated, while “Apple Daily Limited” was petitioned by two creditors at the High Court for a liquidation order.

The case was addressed at the High Court on Wednesday (6th), where the petitioners requested a postponement of the case until the criminal national security case against “Apple” concludes, citing that the company still possesses assets, albeit currently frozen, and the trial outcome may affect these assets. The petitioners also revealed that the Insolvency Fund Board has provided special funds to over 600 employees. The hearing officer, Dick Ho Chin-pang, eventually postponed the case to February 12, 2025, for further hearing.

Men Claims to Represent “Apple Daily” Company

Before the court session, two men sat in the lawyers’ area, claiming to be representatives of “Apple Daily” company during questioning by the hearing officer. They stated they were authorized by the company to attend the hearing but were not lawyers. The officer instructed that the two could not sit in the lawyers’ area, arranging for one to sit at the witness stand and the other in the public gallery. The man sitting at the witness stand, Kwok Man (transliterated), confirmed under questioning that he was not a director of the company.

Reporters attempted to inquire about Kwok’s identity outside the court, but he did not respond.

Petitioners: Hundreds of Employees Receive Special Funds from the Wage Protection Fund Committee

The petitioners, two former employees of “Apple Daily” with legal representation in court, indicated they would not request a liquidation order today, and both parties wished to postpone the hearing. The petitioners also revealed that the Insolvency and Salary Claims Guarantee Fund Committee has provided special financial support to over 600 employees, involving more than 31 million Hong Kong dollars, confirmed by the Labour Department.

The judge questioned whether the petitioners should withdraw their petition if they were not urgently seeking to recover funds from the company. The petitioners reiterated that there were no instructions to withdraw the petition. However, the judge believed the case should not be postponed further, despite the company’s side also requesting a delay due to founder Jimmy Lai facing a criminal trial. The judge considered this not a compelling reason for postponement, noting that criminal proceedings do not necessarily hinder this case.

Petitioner: Outcome of Criminal Trial May Affect Assets

The petitioners explained that the company still has assets, but they are temporarily frozen, preventing the liquidator from accessing them to assist creditors. Since “Apple Daily Limited” is one of the defendants in a criminal trial, the outcome of the trial could affect these assets. Given that the criminal case is set to resume on November 20, with an expected duration of 30 days, the petitioners suggested postponing this case until February of next year.

The hearing officer ultimately postponed the case to February 12, 2025.

Court Ordered Liquidation of Next Media in 2021

The court ordered the liquidation of Next Media in 2021. The creditors, Chan Hon-wing and Yeung Yu-ching, requested the liquidation of “Apple Daily Limited.” Next Digital’s founder, Jimmy Lai, was charged with fraud and “colluding with foreign forces” under the National Security Law in December 2020. In June 2021, Cheung Kim-hung, Chan Pui-man, and three other senior figures from Next Digital and Apple Daily were arrested, and the assets of three associated companies were frozen by the Security Bureau. On June 24, Apple Daily ceased publication, and Next Digital was suspended from trading the same month.

Next Digital Group announced the cessation of operations on July 1 of the same year. In the same month, the Financial Secretary, Paul Chan Mo-po, appointed examiners to investigate the group’s business and subsequently filed a petition in the High Court’s original jurisdiction court in September based on the examiner’s interim report to liquidate Next Digital Limited under the Companies Ordinance. In December, the High Court issued the liquidation order unopposed.