Prince Group's Joint Provisional Liquidators: Chinese Victims May File Claims for Distribution

October 28 - According to Caixin, with the arrest of Chen Zhi, the "head" of Cambodia's Prince Group, various jurisdictions have successively initiated proceedings to dispose of assets related to the Prince Group. Regarding the 30 British Virgin Islands (BVI) entities actually controlled by Chen Zhi, the local court has appointed Joint Provisional Liquidators (JPLs) to investigate and preserve the corresponding assets. Recently, the Joint Provisional Liquidators made statements on issues including the scope of the investigation, disputes over control rights, and victim claims.

The Joint Provisional Liquidators acknowledged that in multiple jurisdictions, parties claiming to represent Chen Zhi himself, Prince Group entities, or related stakeholders have challenged the appointment of the liquidators and their actions. They also stated that no claims filing and distribution process has yet been established. If liquidation proceedings commence in the future and sufficient funds are available to support distribution to creditors, the liquidators will establish a claims procedure, adjudicate claims, and make distributions in accordance with British Virgin Islands insolvency law. Insolvency proceedings in the British Virgin Islands are collective in nature, and eligibility to file claims is not determined by nationality or jurisdiction. Potential victims in any jurisdiction may file claims, which means victims of telecom fraud and online gambling from China may also be able to submit claims at some point in the future.