The Grand Court of the Cayman Islands has appointed KPMG‘s Edward Middleton, Wing Sze Tiffany Wong and Kris Beighton as joint provisional liquidators of Ambow Education Holdings Ltd, a Chinese test prep and training school operator.
On April 23, 2012, Avenue Capital, the largest independent shareholder of Ambow, filed a petition to dissolve Ambow. The company has been battered by potential accounting problems during the past couple of years. Its New York Stock Exchange-listed stock halted trading on March 22, 2013, pending news.
Upon the making of the order, the powers of the directors of Ambow are ceased. But they can still apply to the Grand Court to discharge the appointed liquidators.
The liquidators are authorized and empowered by the Grand Court to take all necessary actions to protect Ambow’s assets. The powers include defending any actions or legal proceedings on behalf of Ambow, conducting equity or debt financing and issue securities, taking possessions of or collecting the company’s properties, among others.
Tiffany Wong, a partner at KPMG China and one of the appointed liquidators, says "the provisional liquidation provides an opportunity for all stakeholders to take stock of the current position."
The liquidators are required to file a report to the Grand Court within 28 days of the order, which is issued on June 7, 2013.
The Grand Court may still dismiss the petition and hand control back to the directors, or make a winding up order.