RE DAYS IMPEX LTD

RE DAYS IMPEX LTD

Winding-up orders were granted because statutory demands were served and the debts were due and payable notwithstanding security valuations which cannot be set off until realisation; proposed restructuring was rejected by the majority of banking creditors and did not constitute a legitimate reason to refuse winding-up orders.

Citation
RE DAYS IMPEX LTD
Parties
Petitioner: The Hongkong & Shanghai Banking Corporation Limited; Respondent (hccw298/2011): Days Impex Limited; Respondent (hccw299/2011): Days International Limited; Potential Purchaser / Interested Party: Ramesh Hathiramani; Official Receiver's Office Representative: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 December 2011
Case Number
HCCW298/2011
Procedural Posture
Companies (winding Up) Proceedings / Hearing/decision on Winding Up Petitions
Outcome
Winding-up orders granted in both HCCW298/2011 and HCCW299/2011
Legal Topics
Winding Up, Statutory Demand, Set Off, Security Enforcement, Restructuring Negotiations
Source Language
EN
Company Law Insolvency Law Banking Law Winding Up Statutory Demand Set Off Security Enforcement Restructuring Negotiations

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Parties

The Hongkong & Shanghai Banking Corporation Limited

Petitioner

Days Impex Limited

Respondent (hccw298/2011)

Days International Limited

Respondent (hccw299/2011)

Ramesh Hathiramani

Potential Purchaser / Interested Party

Official Receiver

Official Receiver's Office Representative

Procedural Posture

Companies (winding Up) Proceedings / Hearing/decision on Winding Up Petitions

Legal Issues

  1. 1 Whether the petitioning creditor is entitled to present winding-up petitions despite security and proposed set-offs
  2. 2 Whether valuation of secured property can be deducted from debt prior to realisation
  3. 3 Whether ongoing restructuring negotiations justify refusing winding-up orders

Ratio Decidendi

Winding-up orders were granted because statutory demands were served and the debts were due and payable notwithstanding security valuations which cannot be set off until realisation; proposed restructuring was rejected by the majority of banking creditors and did not constitute a legitimate reason to refuse winding-up orders.

Court Disposition

Winding-up orders granted in both HCCW298/2011 and HCCW299/2011

Orders

  • Winding-up order made against Days Impex Limited (HCCW298/2011)
  • Winding-up order made against Days International Limited (HCCW299/2011)