Neway Music ordered to liquidate after failing to pay HK $ 63million debt

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Neway Music was ordered by the High Court to liquidate due to its inability to repay a debt of HK $ 63 million.

According to several reports, including the South China Morning Post, Neway Music, which handled music licensing for Neway’s karaoke outlets, opposed a petition filed by the Hong Kong Karaoke Licensing Alliance on May 4. Neway Music said the court should have waited until the case was settled by the Copyright Court. However, the judge said the amount involved was HK $ 63 million and Neway Music never asked to stay the execution of the court judgment, meaning the debt was enforceable and payable. .

The Hong Kong Karaoke Licensing Alliance is a licensing body authorized by Sony Music Entertainment Hong Kong, Warner Music Hong Kong and Universal Music. It negotiates and grants reproduction licenses for approved music videos to karaoke companies in Hong Kong. The alliance and Neway Music have long been in a legal dispute in 2010. Earlier, in 2019, the Copyright Court issued its ruling on a reference brought by Neway Music Limited regarding the reasonableness of the license fees charged in the under a licensing scheme operated by Hong Kong Karaoke. License alliance for the reproduction of karaoke music videos.

After the hearing, the court found the structure and pricing of the alliance’s karaoke server licensing system back catalog directory to be reasonable and made no changes to it.

Neway founded his first karaoke outlet in Hong Kong in 1993 and expanded to other areas of the city as karaoke grew in popularity. However, its business in recent years has been in decline, especially amid the pandemic, as karaoke shops have been forced to close by the government. Meanwhile, two of Neway’s outlets have been sued for a number of issues, including unpaid rent, management fees, air conditioning fees, to name a few. In June, one of Neway’s outlets in Kowloon Bay suddenly closed as staff announced it would be undergoing renovations, according to HK01, while it is also reported that Neway failed to pay rent for his store in Yau Ma Tei from November 2020 also.

According to a recent PwC study, the hardest hit sectors of Hong Kong’s E&M industry were live music, film and outdoor advertising (OOH). However, these segments show the strongest rebound in 2021, albeit from a weak base in 2020.

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