Hong Kong’s Next Digital executives resign and call for liquidation, citing “fear climate” after Apple Daily closes

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Next Digital, which was founded by now-imprisoned mogul Jimmy Lai, said Sunday in a stock exchange that it deposited that its four remaining directors would cease to “better protect shareholders, creditors, employees and former employees.” The directors are President Ip Yut Kin, Louis Gordon Crovitz, Mark Lambert Clifford and Lam Chung Yan.

He also said he was looking for a liquidation of the company’s assets, but hoped Apple Daily could live in Taiwan, where it still has an online edition, under new owners.

The company noted that Next Digital’s shares had already been suspended from trading in June. That’s when top executives and publishers of Apple Daily were arrested in Hong Kong for allegedly violating national security law. The law prohibits any activity that Beijing considers sedition, secession, and subversion, and allows the security of the Chinese state to operate in the territory.
A dramatic police raid on Apple Daily’s editorial office, a government warning at its headquarters and the confiscation of the newspaper’s bank accounts sparked concerns about press freedom and property rights.
Hong Kong’s largest pro-democracy newspaper closes as Beijing tightens control

“The Hong Kong government has never indicated which articles published by Apple Daily allegedly violated national security law,” Next Digital said in a statement on Sunday.

“This uncertainty created a climate of fear, which led to many resignations among the company’s remaining staff in Hong Kong, including those responsible for the regulatory compliance duties of a listed company.”

The company is now requesting that the trading of its shares be “suspended until further notice,” while at the same time requesting a liquidation of its assets to be paid to shareholders, creditors and employees.

Earlier in June, the company’s board had appealed to Hong Kong authorities to thaw assets to pay employees, according to Apple Daily.

The demise of Apple Daily once again gives Hong Kong its battered reputation

The company hopes that part of its legacy can continue to live on.

He asked liquidators to consider agreements “that would generate funds to benefit creditors,” noting that “several parties have previously expressed interest in acquiring Apple Daily’s operations in Taiwan.”

“There’s also value in assets like the unique intellectual property created since Apple Daily was founded,” Next Digital said.

The Hong Kong Office of Trade and Economic Development did not immediately respond to the request for comment on Monday.

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But in June, city leader Carrie Lam addressed concerns about the closure of Apple Daily.

“Do not try to accuse the Hong Kong authorities of using national security law as a tool to suppress the media or to stifle freedom of expression,” he said at the time.

Apple Daily was created by Lai, a former textile tycoon, in 1995, and quickly gained prominence for its criticism of the ruling Communist Party in mainland China. He later became the last big media voice in Hong Kong’s pro-democracy camp, dividing public opinion in the city.

“As Apple Daily often observed, the people of Hong Kong have a collective memory of what life was like elsewhere when freedom of speech was denied: there is no other safe right,” the directors wrote on Sunday. of Next Digital.

– Carly Walsh contributed to this report.

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