RE WEITA PACKING MATERIAL INTERNATIONAL GROUP CO LTD (in Liquidation)

RE WEITA PACKING MATERIAL INTERNATIONAL GROUP CO LTD (in Liquidation)

A permanent stay was granted because the proved debt was paid in full, liquidation and petition costs had been paid or undertaken by the contributories, there was no need for investigation as confirmed by the Liquidators and Official Receiver, and there was a genuine commercial reason (a conditional share sale) for granting a permanent stay; the Liquidators and Official Receiver were neutral and the statutory test under s209(1) was satisfied.

Citation
RE WEITA PACKING MATERIAL INTERNATIONAL GROUP CO LTD (in Liquidation)
Parties
Contributories (applicants): Mr Zhan and Madam Zhang; Petitioner: Bank of China (Hong Kong) Ltd; Company (in Liquidation): Weita Packing Material International Group Company Limited (in Liquidation); Liquidators: Liquidators; Official Receiver: Official Receiver; Assignee/prospective Purchaser: Harvest Plus Enterprises Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 May 2016
Case Number
HCCW184/2008
Procedural Posture
Companies (winding Up) Proceedings / Application for Permanent Stay of Winding Up Order
Outcome
Permanent stay of the winding-up order granted.
Legal Topics
Winding Up, Stay of Proceedings, Liquidation, Contributories, Payment of Proved Debts
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Stay of Proceedings Liquidation Contributories Payment of Proved Debts

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Parties

Mr Zhan and Madam Zhang

Contributories (applicants)

Bank of China (Hong Kong) Ltd

Petitioner

Weita Packing Material International Group Company Limited (in Liquidation)

Company (in Liquidation)

Liquidators

Liquidators

Official Receiver

Official Receiver

Harvest Plus Enterprises Ltd

Assignee/prospective Purchaser

Procedural Posture

Companies (winding Up) Proceedings / Application for Permanent Stay of Winding Up Order

Legal Issues

  1. 1 Whether a permanent stay of the winding-up order should be granted
  2. 2 Whether debts and liquidation expenses have been paid or satisfactorily provided for
  3. 3 Whether the company's affairs require investigation in a winding-up

Ratio Decidendi

A permanent stay was granted because the proved debt was paid in full, liquidation and petition costs had been paid or undertaken by the contributories, there was no need for investigation as confirmed by the Liquidators and Official Receiver, and there was a genuine commercial reason (a conditional share sale) for granting a permanent stay; the Liquidators and Official Receiver were neutral and the statutory test under s209(1) was satisfied.

Court Disposition

Permanent stay of the winding-up order granted.

Orders

  • Permanent stay of the winding-up proceedings granted
  • Copy of the order to be served on the Companies Registrar pursuant to section 209 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap 32