RE BCCI FINANCE INTERNATIONAL LTD.

RE BCCI FINANCE INTERNATIONAL LTD.

Because substantial unrecorded liabilities had arisen (in excess of HK$2 billion) and no adequate guarantee from the majority shareholder/government was available, sale as a going concern was no longer practicable and, in the absence of any viable alternative proposals from creditors, it was in the public interest and in the best interests of depositors and creditors to order the compulsory winding up of both companies with costs.

Citation
RE BCCI FINANCE INTERNATIONAL LTD.
Parties
Petitioner: Financial Secretary; Company/respondent: BCCI Finance International Limited; Company/respondent: Bank of Credit and Commerce Hong Kong Limited (BCC (HK) Limited); Provisional Liquidator: Official Receiver; Creditor Interested Party: Creditors originally opposing
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 March 1992
Case Number
HCCW218/1991
Procedural Posture
Companies (winding Up) / Judgment on Petitions to Wind Up (final Disposition)
Outcome
Both companies ordered to be compulsorily wound up in the public interest; costs awarded
Legal Topics
Winding Up, Provisional Liquidation, Public Interest, Depositor Protection, Sale of Business as Going Concern
Source Language
EN
Banking Law Insolvency/companies Law Public Law Winding Up Provisional Liquidation Public Interest Depositor Protection Sale of Business as Going Concern

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Parties

Financial Secretary

Petitioner

BCCI Finance International Limited

Company/respondent

Bank of Credit and Commerce Hong Kong Limited (BCC (HK) Limited)

Company/respondent

Official Receiver

Provisional Liquidator

Creditors originally opposing

Creditor Interested Party

Procedural Posture

Companies (winding Up) / Judgment on Petitions to Wind Up (final Disposition)

Legal Issues

  1. 1 Whether it is in the public interest to compulsorily wind up the two companies
  2. 2 Whether sale as a going concern remained viable given substantial unrecorded claims and lack of an adequate government guarantee
  3. 3 Whether depositors' proposed alternative (setting aside 20% of deposits) was a viable means to address unrecorded liabilities

Ratio Decidendi

Because substantial unrecorded liabilities had arisen (in excess of HK$2 billion) and no adequate guarantee from the majority shareholder/government was available, sale as a going concern was no longer practicable and, in the absence of any viable alternative proposals from creditors, it was in the public interest and in the best interests of depositors and creditors to order the compulsory winding up of both companies with costs.

Court Disposition

Both companies ordered to be compulsorily wound up in the public interest; costs awarded

Orders

  • Both companies to be compulsorily wound up with costs