Re Anwell Building Construction Co. Ltd.

Re Anwell Building Construction Co. Ltd.

HSBC established a prima facie case for a winding-up order through undisputed failure to comply with a statutory demand, unexplained disappearance of projected cash balances, inability to contact directors and apparent desertion of business premises; given the real risk of dissipation of assets and ongoing trading without accountability, appointment of provisional liquidators was appropriate and ordered subject to HSBC's undertaking as to damages.

Citation
Re Anwell Building Construction Co. Ltd.
Parties
Applicant; Creditor; Petitioner: The Hong Kong and Shanghai Banking Corporation Limited; Company; Respondent: Anwell Building Construction Company Limited; Official Receiver (attending): Official Receiver; Petitioner (earlier Petition Cw1120/01): Unnamed employee (petitioner under Labour Tribunal award); Guaranteed Company/related Party: Wayne Construction Company; Petitioner in Relation to Wayne Construction Company: Pioneer Construction Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 December 2001
Case Number
HCCW1120/2001
Procedural Posture
Companies Winding Up Proceedings; Provisional Liquidation Application / Ex Parte Application Heard in Chambers for Appointment of Provisional Liquidator; Order Made
Outcome
Order made appointing provisional liquidators in terms of the draft order as amended; costs reserved.
Legal Topics
Provisional Liquidator Appointment, Statutory Demand, Winding Up Petition, Insolvency Indicators, Undertaking as to Damages
Source Language
EN
Company Law Insolvency Banking Law Civil Procedure Provisional Liquidator Appointment Statutory Demand Winding Up Petition Insolvency Indicators +1 more

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Parties

The Hong Kong and Shanghai Banking Corporation Limited

Applicant; Creditor; Petitioner

Anwell Building Construction Company Limited

Company; Respondent

Official Receiver

Official Receiver (attending)

Unnamed employee (petitioner under Labour Tribunal award)

Petitioner (earlier Petition Cw1120/01)

Wayne Construction Company

Guaranteed Company/related Party

Pioneer Construction Company Limited

Petitioner in Relation to Wayne Construction Company

Procedural Posture

Companies Winding Up Proceedings; Provisional Liquidation Application / Ex Parte Application Heard in Chambers for Appointment of Provisional Liquidator; Order Made

Legal Issues

  1. 1 Whether a creditor has established a prima facie case for a winding-up order
  2. 2 Whether appointment of provisional liquidators is appropriate to preserve assets and prevent dissipation
  3. 3 Whether presence of another petition affects HSBC's locus to apply

Ratio Decidendi

HSBC established a prima facie case for a winding-up order through undisputed failure to comply with a statutory demand, unexplained disappearance of projected cash balances, inability to contact directors and apparent desertion of business premises; given the real risk of dissipation of assets and ongoing trading without accountability, appointment of provisional liquidators was appropriate and ordered subject to HSBC's undertaking as to damages.

Court Disposition

Order made appointing provisional liquidators in terms of the draft order as amended; costs reserved.

Orders

  • Appointment of provisional liquidators in terms of the draft order as amended
  • HSBC to give the usual undertaking as to damages in the event the order is improperly made