RE CHINA STEEL DEVELOPMENT CO LTD

RE CHINA STEEL DEVELOPMENT CO LTD

The court concluded the petitioners proved each company was unable to pay its debts as they fell due and that presentation of petitions and related defaults accelerated indebtedness; accordingly winding-up orders were made for each company and costs were to be paid out of the assets of the company concerned.

Citation
RE CHINA STEEL DEVELOPMENT CO LTD
Parties
Company (subject): AAHL; Company (subject): AAICL; Company (subject): CSDCL; Company (subject): AAMCL; Company (subject): AA Investments Company Limited; Petitioner: Public Bank (Hong Kong) Limited; Petitioner: Petitioner in HCCW Nos. 140, 141 & 142; Provisional Liquidators: Provisional Liquidators; Official Receiver: Official Receiver; Supporting Creditors: Supporting Creditors: OK Spring Roll Limited Partnership & Asia Aluminum Group Limited; Joint Receivers: Joint Receivers
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 July 2009
Case Number
HCCW142/2009
Procedural Posture
Companies (winding Up) / Winding Up Order Made
Outcome
Winding-up orders made in respect of each of the companies named in the petitions.
Legal Topics
Winding Up, Inability to Pay Debts, Inter Company Loans, Acceleration of Debt on Default, Creditor Petitions
Source Language
EN
Insolvency Company Law Contract Law Winding Up Inability to Pay Debts Inter Company Loans Acceleration of Debt on Default Creditor Petitions

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Parties

AAHL

Company (subject)

AAICL

Company (subject)

CSDCL

Company (subject)

AAMCL

Company (subject)

AA Investments Company Limited

Company (subject)

Public Bank (Hong Kong) Limited

Petitioner

Petitioner in HCCW Nos. 140, 141 & 142

Petitioner

Provisional Liquidators

Provisional Liquidators

Official Receiver

Official Receiver

Supporting Creditors: OK Spring Roll Limited Partnership & Asia Aluminum Group Limited

Supporting Creditors

Joint Receivers

Joint Receivers

Procedural Posture

Companies (winding Up) / Winding Up Order Made

Legal Issues

  1. 1 Whether each company was unable to pay its debts as they fell due
  2. 2 Whether presentation of petitions or events constituted events of default accelerating obligations under senior notes and inter-company loans
  3. 3 Whether petitioning creditors established entitlement to winding-up orders

Ratio Decidendi

The court concluded the petitioners proved each company was unable to pay its debts as they fell due and that presentation of petitions and related defaults accelerated indebtedness; accordingly winding-up orders were made for each company and costs were to be paid out of the assets of the company concerned.

Court Disposition

Winding-up orders made in respect of each of the companies named in the petitions.

Orders

  • Make winding-up order in respect of each of the companies in the four petitions.
  • The costs of the petitioner are to be paid out of the assets of the company concerned.