RE CHENG WAI KEI

RE CHENG WAI KEI

The court found the petitioner had established an outstanding debt in excess of US$5 million, the debtor produced no evidence of ability to pay, the proposals to compound were speculative and unsupported, and the terms of the guarantee allowed enforcement without first realising securities (and the statement of account clause did not prevent other proof). Therefore there was no substantial dispute and a bankruptcy order was properly made against the debtor.

Citation
RE CHENG WAI KEI
Parties
Petitioner/creditor: COMMERZBANK AKTIENGESELLSCHAFT; Debtor: CHENG WAI KEI
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 July 2002
Case Number
HCB2109/2002
Procedural Posture
Bankruptcy Petition / Hearing and Reasons for Judgment (bankruptcy Order Made)
Outcome
Bankruptcy order made against the debtor; costs awarded to the petitioner
Legal Topics
Statutory Demand, Proof of Debt, Bankruptcy Order, Guarantee Enforcement, Dispute of Debt, Proposal to Compound/deal
Source Language
EN
Bankruptcy Insolvency Contract Guarantee Civil Procedure Statutory Demand Proof of Debt Bankruptcy Order +3 more

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Parties

COMMERZBANK AKTIENGESELLSCHAFT

Petitioner/creditor

CHENG WAI KEI

Debtor

Procedural Posture

Bankruptcy Petition / Hearing and Reasons for Judgment (bankruptcy Order Made)

Legal Issues

  1. 1 Whether the debt claimed is due and undisputed sufficient to ground a bankruptcy petition
  2. 2 Whether the debtor has ability to pay the debt
  3. 3 Whether the debtor's proposals to compound the debt are sufficiently certain to defeat the petition

Ratio Decidendi

The court found the petitioner had established an outstanding debt in excess of US$5 million, the debtor produced no evidence of ability to pay, the proposals to compound were speculative and unsupported, and the terms of the guarantee allowed enforcement without first realising securities (and the statement of account clause did not prevent other proof). Therefore there was no substantial dispute and a bankruptcy order was properly made against the debtor.

Court Disposition

Bankruptcy order made against the debtor; costs awarded to the petitioner

Orders

  • Bankruptcy order made against Cheng Wai Kei
  • Costs awarded to the Petitioner (Commerzbank Aktiengesellschaft)