Re Guangnan (KK) Supermarket Ltd.

Re Guangnan (KK) Supermarket Ltd.

The court appointed provisional liquidators because the petitioner established a sufficient prima facie case of insolvency (low current ratio, large liabilities, insufficient assets) and imminent risk to assets (perishable inventory, supplier claims, employee claims, landlord actions) making urgent provisional appointment necessary under s193 to preserve assets pending the petition hearing.

Citation
Re Guangnan (KK) Supermarket Ltd.
Parties
Petitioner: Guangnan Supermerket Development Limited; Company: Guangnan (KK) Supermarket Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 June 2001
Case Number
HCCW618/2001
Procedural Posture
Companies Winding Up Petition / Ex Parte Application for Appointment of Provisional Liquidators
Outcome
Provisional liquidators appointed
Legal Topics
Provisional Liquidators, Winding Up Petition, Preservation of Assets, Insolvency Evidence
Source Language
EN
Company Law Insolvency Provisional Liquidators Winding Up Petition Preservation of Assets Insolvency Evidence

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Parties

Guangnan Supermerket Development Limited

Petitioner

Guangnan (KK) Supermarket Limited

Company

Procedural Posture

Companies Winding Up Petition / Ex Parte Application for Appointment of Provisional Liquidators

Legal Issues

  1. 1 Whether the petitioner has made out a good prima facie case for a winding up order
  2. 2 Whether provisional liquidators should be appointed pending the hearing of the petition to preserve assets
  3. 3 Whether urgency, balance of convenience and commercial reality justify immediate provisional appointment

Ratio Decidendi

The court appointed provisional liquidators because the petitioner established a sufficient prima facie case of insolvency (low current ratio, large liabilities, insufficient assets) and imminent risk to assets (perishable inventory, supplier claims, employee claims, landlord actions) making urgent provisional appointment necessary under s193 to preserve assets pending the petition hearing.

Court Disposition

Provisional liquidators appointed

Orders

  • Provisional liquidators appointed (members of a firm of accountants on the Official Receiver Panel A list) in terms of the amended draft order