RE MERCURIES- JEANTEX HOLDINGS LTD (IN LIQUIDATION)

RE MERCURIES- JEANTEX HOLDINGS LTD (IN LIQUIDATION)

The court sanctioned the liquidators to write off the identified assets because the liquidators had made reasonable efforts to realise them, the assets were of insignificant value or the anticipated costs of realisation would exceed any proceeds, and the statutory consultation process with the committee of inspection had occurred; accordingly the write-off and payment of the application costs from company assets were ordered.

Citation
RE MERCURIES- JEANTEX HOLDINGS LTD (IN LIQUIDATION)
Parties
Company (subject): Mercuries-Jeantex Holdings Limited (in liquidation); Applicants (liquidators): Joint & Several Liquidators of Mercuries-Jeantex Holdings Limited; Member of Committee of Inspection (respondent): Theme International Holdings (BVI) Ltd; Member of Committee of Inspection (respondent): DBS Kwong On Bank
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 November 2003
Case Number
HCCW836/1999
Procedural Posture
Companies (winding Up) / Application in Chambers for Sanction to Write Off Assets
Outcome
Sanction granted to liquidators to write off the identified assets; costs of the application to be paid from the company's assets; application for approval of remuneration deferred.
Legal Topics
Liquidators' Powers, Asset Write Off, Realisation of Assets, Committee of Inspection, Liquidators' Remuneration
Source Language
EN
Company Law Insolvency Bankruptcy Civil Procedure Liquidators' Powers Asset Write Off Realisation of Assets Committee of Inspection +1 more

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Parties

Mercuries-Jeantex Holdings Limited (in liquidation)

Company (subject)

Joint & Several Liquidators of Mercuries-Jeantex Holdings Limited

Applicants (liquidators)

Theme International Holdings (BVI) Ltd

Member of Committee of Inspection (respondent)

DBS Kwong On Bank

Member of Committee of Inspection (respondent)

Procedural Posture

Companies (winding Up) / Application in Chambers for Sanction to Write Off Assets

Legal Issues

  1. 1 Whether liquidators have statutory power and should be sanctioned to write off assets that cannot be realised
  2. 2 Whether reasonable steps were taken to realise the assets
  3. 3 Whether costs of realisation exceed expected proceeds justifying write-off

Ratio Decidendi

The court sanctioned the liquidators to write off the identified assets because the liquidators had made reasonable efforts to realise them, the assets were of insignificant value or the anticipated costs of realisation would exceed any proceeds, and the statutory consultation process with the committee of inspection had occurred; accordingly the write-off and payment of the application costs from company assets were ordered.

Court Disposition

Sanction granted to liquidators to write off the identified assets; costs of the application to be paid from the company's assets; application for approval of remuneration deferred.

Orders

  • Liquidators are sanctioned to write off the identified assets that cannot be realised
  • The assets must be properly set out in the draft order submitted to the court for approval