Next Digital’s Collapse: A Pro‑Democracy Newspaper’s Final Curtain
When a company’s board accepts resignation en masse, you know the stakes are high. On Sunday, Next Digital Ltd., the Hong Kong media group behind the beloved Apple Daily, declared it would be liquidated. The move—effectively the death knell for the conglomerate—came after a wave of resignations from every corner of the board.
What Went Down?
- Jimmy Lai – The jailed tycoon who owns Next Digital – lost his once‑glittering newsroom when police raided the premises to probe whether any articles breached the 2020 national‑security law. The paper, once a symbol of free press, shut its doors last June.
- The company’s assets were frozen during the investigation, and its shares have been trading‑suspended since 17 June.
- In a filing to the Hong Kong bourse late Sunday, Next Digital said the orderly liquidation would best serve shareholders, creditors, employees, and other stakeholders.
The Big Resignations
Board members swiftly stepped down to clear the path for liquidators. Here’s the quick rundown:
- Ip Yut Kin – Chairman and non‑executive director.
- Louis Gordon Crovitz, Mark Lambert Clifford, & Elic Lam – Independent non‑executive directors.
- The CEO (captured during the raid) and the CFO had already quit in July.
With the board’s exits, the company aims to unlock the blocked payments that were once off‑limits to directors. This includes full compensation for staff and settlements for creditors—an attempt to put a final, dignified bow to the company’s debts.
Liquidators on the Scene
Once approved by the Hong Kong government, the liquidators will be able to:
- Authorize previously blocked payouts.
- Execute value‑creating transactions to raise funds for creditors.
Next Digital stresses the uncertainty around which Apple Daily articles might have breached the security law, claiming that “this ambiguity has fostered a climate of fear” prompting the large number of resignations—especially those responsible for regulatory compliance.
Under the National Security Law
The company’s statement notes that the National Security Law allows for a company’s liquidation purely on administrative grounds—no court involvement required. “We observe that the events affecting the company and its people…occurred despite no trials or convictions,” it said. “Under this new law, a company can be forced into liquidation without the involvement of the courts.
In a vein that matches Apple Daily’s historic voice, the statement reminded readers “of Hong Kong’s collective memory of life when speech was denied—no other rights are safe.”
Critics & Defenders
Critics argue the law is a tool to silence dissent and erode fundamental freedoms—particularly the media. Opponents point to the 1997 handover from the UK and the new “red line” on national security—saying the law is used to quash “undermining” acts that cross that line. The government vetoes claims of rights erosion, insisting actions “are based on evidence and have nothing to do with an individual’s background or profession.”
As the last chapter of a once‑vibrant media house closes, all eyes remain on Next Digital’s liquidation: will it be a smooth finish or a chaotic finale?
