SFC petitions for the winding up of and seeks to appoint provisional liquidators

Hong Kong's Securities and Futures Commission (SFC) announced that it  has presented a petition to the Court of First Instance (CFI) to wind up Adamas Asset Management (HK) Limited (Adamas) and seek to appoint provisional liquidators.

According to the press release, the SFC has obtained an order from the CFI on 25 February to appoint Ms Chan Pui Sze and Ms Mak Hau Yin, both of Briscoe Wong Advisory Limited, as joint and several provisional liquidators of. The liquidators will manage the affairs of Adamas (including its rights and powers in relation to the private funds advised or managed by Adamas) as they consider appropriate.

The matter will return to the CFI on 9 March for a hearing as to whether it will continue the appointment of the provisional liquidators.

The SFC explains that Adamas' sole director and ultimate shareholder, Paul Lincoln Heffner, passed away in January 2021, there has not been any person with proper authority attending to its affairs. Adamas has not been operational.

The SFC considers that it is in the public interest for Adamas to be wound up so that liquidators can be put in place to (i) assist in the orderly and expeditious winding up of the funds advised or managed by Adamas to facilitate the return of assets to investors, (ii) preserve the records of Adamas so that they will not be lost, disposed of or otherwise misused or dealt with by unauthorised persons to the prejudice or detriment of Adamas or the fund investors and (iii) carry out an independent investigation of the business and affairs of Adamas for the protection of the interests of the fund investors where necessary.