RE FAN CHI WING

RE FAN CHI WING

The court found the debtor had made full and frank disclosure material to creditors, the nominee had taken reasonable and proportionate steps to verify the key matters (assets/liabilities, implementation prospects, and fairness of voting/valuation) and the Amended Proposal was sufficiently serious and viable to warrant giving creditors the opportunity to vote; accordingly the court exercised its discretion to make an interim order to convene a creditors' meeting and extended the interim order to seven days after that meeting.

Citation
RE FAN CHI WING
Parties
Debtor/applicant: Fan Chi Wing; Creditor/respondent: Sanford Yung-Tao Yung; Proposed Nominee: Chung Cheuk Ming
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 October 2009
Case Number
HCBI37/2009
Procedural Posture
Bankruptcy (individual Voluntary Arrangement Application) / Application for Interim Order Under Sections 20 and 20 a of the Bankruptcy Ordinance; Hearing on Interim Order Before High Court Judge
Outcome
Interim order granted to convene creditors' meeting to consider the Amended Proposal; interim order extended to seven days after the creditors' meeting; no order as to costs for the opposing creditor.
Legal Topics
Individual Voluntary Arrangement, Interim Order, Nominee's Duties, Full and Frank Disclosure, Creditor Meeting
Source Language
EN
Bankruptcy Insolvency Civil Procedure Individual Voluntary Arrangement Interim Order Nominee's Duties Full and Frank Disclosure Creditor Meeting

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Fan Chi Wing

Debtor/applicant

Sanford Yung-Tao Yung

Creditor/respondent

Chung Cheuk Ming

Proposed Nominee

Procedural Posture

Bankruptcy (individual Voluntary Arrangement Application) / Application for Interim Order Under Sections 20 and 20 a of the Bankruptcy Ordinance; Hearing on Interim Order Before High Court Judge

Legal Issues

  1. 1 Whether the court should grant an interim order to convene a creditors' meeting to consider the proposed IVA
  2. 2 Whether the debtor made full and frank disclosure of assets, liabilities and income
  3. 3 Whether the proposed nominee took reasonable steps to verify (i) accuracy of assets and liabilities,(ii) viability of the proposal and(iii) fairness of claims and valuations for voting

Ratio Decidendi

The court found the debtor had made full and frank disclosure material to creditors, the nominee had taken reasonable and proportionate steps to verify the key matters (assets/liabilities, implementation prospects, and fairness of voting/valuation) and the Amended Proposal was sufficiently serious and viable to warrant giving creditors the opportunity to vote; accordingly the court exercised its discretion to make an interim order to convene a creditors' meeting and extended the interim order to seven days after that meeting.

Court Disposition

Interim order granted to convene creditors' meeting to consider the Amended Proposal; interim order extended to seven days after the creditors' meeting; no order as to costs for the opposing creditor.

Orders

  • Interim order made under sections 20 and 20A of the Bankruptcy Ordinance to convene a meeting of creditors to consider the Amended Proposal
  • Creditors' meeting directed to be convened on 3 November 2009