STARK MOLY LTD v. ANGEL WISE LTD

STARK MOLY LTD v. ANGEL WISE LTD

The New Shares were allotted as a consequence of Wiseking's restructuring and fall within the Share Charge Agreement's definition of 'Related Assets'; equity imposed an equitable charge in favour of Stark Moly on the New Shares upon allotment, entitling Stark Moly to a declaration and to have the charging order nisi made absolute; there is no basis to stay the proceedings pending Angel Wise's liquidation or winding up given Stark Moly's proprietary interest.

Citation
STARK MOLY LTD v. ANGEL WISE LTD
Parties
Plaintiff / Applicant / Judgment Creditor: Stark Moly Limited; 1st Defendant: Wiseking Mining Investment Company Limited; 2nd Defendant / Respondent / Judgment Debtor / Debtor Company: Angel Wise Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 March 2012
Case Number
HCMP1772/2011
Procedural Posture
Share Charge Enforcement; Charging Order; Winding Up Proceedings; Recognition and Enforcement of Foreign Judgment / Judgment on Applications (declaration and Charging Order Nisi Made Absolute)
Outcome
Declaration for Stark Moly; charging order made absolute; application for stay dismissed; costs and consequential orders to be determined
Legal Topics
Share Charge, Charging Order, Declaration of Equitable Charge, Stay of Proceedings Pending Liquidation, Winding Up Petition, Fraudulent Dispositions
Source Language
EN
Equity Insolvency Company Law Private International Law/enforcement of Foreign Judgments Share Charge Charging Order Declaration of Equitable Charge Stay of Proceedings Pending Liquidation +2 more

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Parties

Stark Moly Limited

Plaintiff / Applicant / Judgment Creditor

Wiseking Mining Investment Company Limited

1st Defendant

Angel Wise Limited

2nd Defendant / Respondent / Judgment Debtor / Debtor Company

Procedural Posture

Share Charge Enforcement; Charging Order; Winding Up Proceedings; Recognition and Enforcement of Foreign Judgment / Judgment on Applications (declaration and Charging Order Nisi Made Absolute)

Legal Issues

  1. 1 Whether the New Shares fall within the Share Charge Agreement and are subject to an equitable charge in favour of Stark Moly
  2. 2 Whether the charging order nisi should be made absolute
  3. 3 Whether proceedings should be stayed pending Angel Wise's liquidation/winding up in the BVI and Hong Kong

Ratio Decidendi

The New Shares were allotted as a consequence of Wiseking's restructuring and fall within the Share Charge Agreement's definition of 'Related Assets'; equity imposed an equitable charge in favour of Stark Moly on the New Shares upon allotment, entitling Stark Moly to a declaration and to have the charging order nisi made absolute; there is no basis to stay the proceedings pending Angel Wise's liquidation or winding up given Stark Moly's proprietary interest.

Court Disposition

Declaration for Stark Moly; charging order made absolute; application for stay dismissed; costs and consequential orders to be determined

Orders

  • Declaration that the 86,163 New Shares in Wiseking stand charged in favour of Stark Moly Limited pursuant to the Share Charge Agreement dated 12 November 2007
  • The charging order nisi in favour of Stark Moly Limited is made absolute