RE ANGEL WISE LTD

RE ANGEL WISE LTD

The New Shares derived from Angel Wise's FabWay shareholding and therefore fell within the Share Charge Agreement's definition of Related Assets; an equitable charge attached in favour of Stark Moly on allotment, entitling Stark Moly to a declaration and to have the charging order nisi made absolute; a stay was properly refused because Stark Moly is enforcing a proprietary right as a secured creditor and Hong Kong is the appropriate forum to determine the proprietary effect of the charge.

Citation
RE ANGEL WISE LTD
Parties
Plaintiff / Applicant / Judgment Creditor: Stark Moly Limited; 1st Defendant: WiseKing Mining Investment Company Limited; 2nd Defendant / Respondent / Judgment Debtor: Angel Wise Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 March 2012
Case Number
HCCW58/2012
Procedural Posture
HCMP 2653/2011; HCMP 1772/2011; HCCW 58/2012 / Hearing and Judgment on Applications (declaration and Charging Order)
Outcome
Declaration granted that the New Shares stand charged in favour of Stark Moly; charging order nisi made absolute; Angel Wise's application for a stay dismissed; costs and consequential orders to be heard
Legal Topics
Share Charge, Charging Order, Proprietary Interest, Stay of Proceedings, Cross Border Insolvency, Fraudulent Disposition
Source Language
EN
Company Law Insolvency Equity Enforcement of Foreign Judgments Share Charge Charging Order Proprietary Interest Stay of Proceedings +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

Procedural Posture

HCMP 2653/2011; HCMP 1772/2011; HCCW 58/2012 / Hearing and Judgment on Applications (declaration and Charging Order)

Legal Issues

  1. 1 Whether the 86,163 Wiseking shares allotted to Angel Wise (the New Shares) fall within the Share Charge Agreement as Related Assets and thus 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 because of Angel Wise's liquidation/winding up proceedings in the BVI and Hong Kong

Ratio Decidendi

The New Shares derived from Angel Wise's FabWay shareholding and therefore fell within the Share Charge Agreement's definition of Related Assets; an equitable charge attached in favour of Stark Moly on allotment, entitling Stark Moly to a declaration and to have the charging order nisi made absolute; a stay was properly refused because Stark Moly is enforcing a proprietary right as a secured creditor and Hong Kong is the appropriate forum to determine the proprietary effect of the charge.

Court Disposition

Declaration granted that the New Shares stand charged in favour of Stark Moly; charging order nisi made absolute; Angel Wise's application for a stay dismissed; costs and consequential orders to be heard

Orders

  • Declaration that the 86,163 Wiseking shares allotted to Angel Wise (the New Shares) 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