RE ANDO CREDIT LTD

RE ANDO CREDIT LTD

The appointment of provisional liquidators was appropriate on the unopposed application and the court will include an express power permitting the provisional liquidators to make an application for recognition by the Shenzhen Bankruptcy Court, because Hong Kong courts have previously recognised and assisted Mainland insolvency proceedings where there is a close connection with Hong Kong and such recognition is necessary to enable recovery of assets or claims in the Mainland; the order therefore must explicitly authorise pursuit of Mainland recognition subject to the court's subsequent approval of stages of that application.

Citation
[2020] HKCFI 2775
Parties
Petitioner: Petitioner; Company: Ando Credit Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 November 2020
Case Number
HCCW339/2020
Procedural Posture
Companies Winding Up Proceedings / Application for Appointment of Provisional Liquidators (ex Parte on Notice)
Outcome
Provisional liquidators appointed; order to include express power to apply for recognition by Shenzhen Bankruptcy Court subject to court approval of application stages.
Legal Topics
Provisional Liquidation, Recognition of Foreign Liquidators, Mutual Recognition Between Hong Kong and Mainland China, Powers of Liquidators, Judicial Assistance
Source Language
EN
Insolvency Law Cross Border Insolvency Company Law Civil Procedure International Judicial Cooperation Provisional Liquidation Recognition of Foreign Liquidators Mutual Recognition Between Hong Kong and Mainland China +2 more

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Parties

Petitioner

Petitioner

Ando Credit Limited

Company

Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up Proceedings / Application for Appointment of Provisional Liquidators (ex Parte on Notice)

Legal Issues

  1. 1 Whether provisional liquidators should be appointed over the company
  2. 2 Whether the provisional liquidators should be granted an express power to apply for recognition by the Shenzhen Bankruptcy Court
  3. 3 Whether Hong Kong courts will and can recognise and assist Mainland liquidation proceedings

Ratio Decidendi

The appointment of provisional liquidators was appropriate on the unopposed application and the court will include an express power permitting the provisional liquidators to make an application for recognition by the Shenzhen Bankruptcy Court, because Hong Kong courts have previously recognised and assisted Mainland insolvency proceedings where there is a close connection with Hong Kong and such recognition is necessary to enable recovery of assets or claims in the Mainland; the order therefore must explicitly authorise pursuit of Mainland recognition subject to the court's subsequent approval of stages of that application.

Court Disposition

Provisional liquidators appointed; order to include express power to apply for recognition by Shenzhen Bankruptcy Court subject to court approval of application stages.

Orders

  • Appointment of provisional liquidators over Ando Credit Limited
  • Order to include an express provision permitting the provisional liquidators to apply for recognition by the Shenzhen Bankruptcy Court, subject to the High Court's approval of the stages of that application