The asset review connected to Prince Group is still underway. Chinese victims of telecom fraud and online gambling may in the future be able to file claims in the relevant liquidation proceedings, but no claims or compensation mechanism has yet been launched.
According to a Caixin report on October 28, joint provisional liquidators appointed by the British Virgin Islands court said that if the relevant companies later enter formal liquidation proceedings and have sufficient assets for distribution, a claims mechanism will be established under local law. In principle, claims will not be restricted by the nationality or location of the claimant, and Chinese victims may also submit applications at that time. However, eligibility to file a claim and the possibility of receiving compensation will still depend on subsequent procedures and the results of the review.
A British Virgin Islands government notice said the court appointed three professionals from Interpath Advisory as joint provisional liquidators this January to investigate 30 BVI-registered companies connected to Prince Group and trace and preserve the related assets. The current priorities of the liquidation include obtaining company books and records, identifying assets and maintaining their value, while the complete corporate affiliation structure remains to be determined.
The proceedings have also been disputed. The U.S. Bankruptcy Court for the Southern District of New York recognized the BVI proceedings as a “foreign main proceeding” in June, after which the parties filed an appeal. When Caixin published its report, the appeal had yet to be decided.
The liquidators have not announced any formal claims filing arrangements. There is currently no clear answer as to when victims may file claims, how claims will be recognized, or whether the assets will ultimately be available for compensation.
