RE BCCI FINANCE INTERNATIONAL LTD.

RE BCCI FINANCE INTERNATIONAL LTD.

Given the emergence of substantial unrecorded claims exceeding available guarantees, the failure of sale negotiations and the absence of any viable alternative proposal from creditors, it was in the public interest and for the protection of depositors and creditors that both companies be compulsorily wound up.

Citation
RE BCCI FINANCE INTERNATIONAL LTD.
Parties
Petitioner: Financial Secretary; Provisional Liquidator/respondent: Official Receiver; Company/respondent: BCCI Finance International Limited; Company/respondent: Bank of Credit and Commerce Hong Kong Limited; Creditors: Creditors originally opposing
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 March 1992
Case Number
HCCW217/1991
Procedural Posture
Companies (winding Up) Under Banking Ordinance and Companies Ordinance / Hearing on Petitions and Final Judgment (order for Winding Up)
Outcome
Both companies ordered to be compulsorily wound up by the court
Legal Topics
Compulsory Winding Up, Public Interest, Liquidation, Provisional Liquidation, Creditor/depositor Claims, Sale of Bank as Going Concern, Government Guarantees
Source Language
EN
Banking Law Company Law Insolvency Law Public Law Compulsory Winding Up Public Interest Liquidation Provisional Liquidation +3 more

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Parties

Financial Secretary

Petitioner

Official Receiver

Provisional Liquidator/respondent

BCCI Finance International Limited

Company/respondent

Bank of Credit and Commerce Hong Kong Limited

Company/respondent

Creditors originally opposing

Creditors

Procedural Posture

Companies (winding Up) Under Banking Ordinance and Companies Ordinance / Hearing on Petitions and Final Judgment (order for Winding Up)

Legal Issues

  1. 1 Whether the companies should be compulsorily wound up in the public interest
  2. 2 Whether a sale as going concerns was feasible given unrecorded liabilities and inadequate guarantees
  3. 3 Whether the objections of a minority of depositors defeated the petitions in absence of any viable alternative proposal

Ratio Decidendi

Given the emergence of substantial unrecorded claims exceeding available guarantees, the failure of sale negotiations and the absence of any viable alternative proposal from creditors, it was in the public interest and for the protection of depositors and creditors that both companies be compulsorily wound up.

Court Disposition

Both companies ordered to be compulsorily wound up by the court

Orders

  • Both companies to be compulsorily wound up
  • Costs awarded to the petitioner