'Climate of fear': Jimmy Lai’s Hong Kong media group announces closure; files liquidation

In aftermath of an official crackdown that has left staff with means to operate, Jimmy Lai’s Hong Kong media company  Next Digital Ltd. anunced on Sunday, Sep. 5, that it was closing down due to a ‘climate of fear'. In an official statement, firm’s board of directors called for liquidation. firm that published Hong Kong's largest pro-democracy Apple Daily, has been kwn for vehement criticism of Xi Jinping’s communist regime. On Sunday, next Digital’s board of directors created a widespre stir with anuncement that y were quitting and liquidating assets in order to pay salaries of staff members and payments to creditors. 

jailed dissenter of Chinese government, tycoon Jimmy Lai was sentenced to 14 months imprisonment under draconian National Security Law for unauthorized assembly in 2019. Board of directors at Lai’s Next Digital Ltd. in a letter, lambasted Hong Kong government for bypassing courts and launching controversial crackdowns enacting China-imposed national security law. latter accused China of driving m out of business. 

“Hong Kong Secretary for Security cited National Security Law to freeze company bank accounts, including those for Apple Daily newspaper in Hong Kong and its digital operations,” board of directors stated in company’s filing. “ Secretary for Security furr instructed that it would be a crime for Company to use its funds in or accounts to pay any expenses on behalf of se operations.” 

Next Digital Chairman Ip Yut Kin and directors Mark Clifford, Louis Gordon Crovitz, and Lam Chung Yan turned in ir resignations on Sunday, according to an exchange filing. y asserted that company’s assets and bank accounts were frozen and its top reporters, and editors were detained, and ors threatened. company asked government to allow payment for former staff. Due to recent crackdown, it could longer legally pay Apple Daily’s staff, including reporters, and has been banned from paying costs of doing business such as buying ink and keeping electricity on. “We have concluded that best interests of shareholders, creditors, employees, and or stakeholders will be served by an orderly liquidation, which we hope will result in liquidators being allowed by Hong Kong government to authorize payments that directors were banned from approving, including for creditors and for former staff,” company said. 

“ Hong Kong government has never indicated which articles published by Apple Daily allegedly violated National Security Law,” company’s filing on Sunday re. “This uncertainty created a climate of fear, resulting in many resignations among remaining staff at Company in Hong Kong, including those responsible for regulatory compliance duties of a publicly tred company,’ it ded.

court order to freeze firm's assets 

Next Digital was also prohibited from using assets, despite fact that re was court order to freeze m, according to resignation document. Apple Daily and its digital operations ceased publishing on 24 June 2021 after founder Jimmy Lai, and seven former Next Digital executives, editors, and editorial writers were arrested.  company informed that several parties h expressed interest in acquiring operations of Apple Daily in Taiwan. re is also value in assets such as unique intellectual property created since Apple Daily was founded in 1995.