High Court orders jailed Jimmy Lai's Next Digital to wind up

Jailed media tycoon Jimmy Lai Chee-ying's Next Digital Ltd was ordered by the High Court to wind up after receiving a petition from the Financial Secretary Paul Chan Mo-po.

In the hearing on Wednesday, no representative from Next Digital appeared in the courtroom, and master Jack Wong Kin-tong ordered the media company to wind up.

Chan filed the winding-up petition to the High Court in late September, saying the move came after factoring in the public interest.

In July, Chan appointed former president of the Hong Kong Institute of Certified Public Accountants, Clement Chan Kam-wing as a special inspector to investigate the affairs of the pro-democracy media company, which defuncted in June.

The inspector submitted an interim report on September 14, leading to Chan's decision to go through with the winding-up.

In October, the High Court had appointed Sammy Koo Chi-sum and Cliff Tsui Chi-chiu from Ernst & Young Transaction Ltd as the liquidators of Next Digital as requested by the government, but they later resigned.
The court then appointed Kenny Tam King-ching and Man King-shing from Kenny Tam & Co as the new liquidators.

The government has frozen HK$18 million of the media company’s assets since June 17 as part of a national security investigation. Apple Daily then ceased its online operation on June 23 and printed its last edition on June 24.

The imprisoned company founder, 74-year-old Lai, who is serving his 20 months sentence in jail for his four unauthorized assembly cases, will appear in court on December 28 for his national security case.

He was charged with one count of collusion with a foreign country or with external elements to endanger national security, another count of conspiracy to commit collusion with a foreign country or with external elements to endanger national security, and further count of conspiracy to do an act or a series of acts tending and intended to pervert the course of public justice.

Two company directors of Next Digital, seven former Next Digital executives, a number of editors and editorial writers have all been arrested for collusion under the national security law.

They were all denied bail by court and they could face a maximum sentence of life imprisonment if convicted of collusion.

Apple Daily’s branch in Taiwan was earlier reported to be run out of funds and stop publishing, and a Hong Kong-based liquidator has approached the unit to ask for information regarding the assets of Apple Daily Taiwan’s unit, according to people familiar with the matter.

Taiwan’s Mainland Affairs Council on Wednesday said it is closely following the development of the Next Digital liquidation case, and authorities would take necessary actions to prevent leakage of personal data of its residents.