In re Lisgold Holdings Ltd.

In re Lisgold Holdings Ltd.

Because the judgment debt was undisputed and the statutory demand remained unsatisfied, and because the company's repayment proposal depended on uncertain future joint venture profits and credit facilities allocated to the joint venture rather than debt repayment, the court found the proposal speculative and insufficient and therefore made the winding up order.

Citation
In re Lisgold Holdings Ltd.
Parties
Petitioner (judgment Creditor): Petitioner (bank); Respondent (company): Lisgold Holdings Ltd.; Intervener: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 January 1998
Case Number
HCCW553/1997
Procedural Posture
Companies (winding Up) / Hearing on Winding Up Petition; Winding Up Order Made
Outcome
Winding up order made against Lisgold Holdings Ltd.
Legal Topics
Winding Up, Statutory Demand, Inability to Pay Debts, Court Discretion to Refuse Winding Up, Repayment Proposals
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Statutory Demand Inability to Pay Debts Court Discretion to Refuse Winding Up Repayment Proposals

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Parties

Petitioner (bank)

Petitioner (judgment Creditor)

Lisgold Holdings Ltd.

Respondent (company)

Official Receiver

Intervener

Procedural Posture

Companies (winding Up) / Hearing on Winding Up Petition; Winding Up Order Made

Legal Issues

  1. 1 Whether the company is insolvent and unable to pay its debts
  2. 2 Whether the court should exercise its discretion to refuse a winding up order in light of the company's repayment proposal
  3. 3 Whether speculative future joint venture profits or credit facilities suffice to discharge the judgment debt

Ratio Decidendi

Because the judgment debt was undisputed and the statutory demand remained unsatisfied, and because the company's repayment proposal depended on uncertain future joint venture profits and credit facilities allocated to the joint venture rather than debt repayment, the court found the proposal speculative and insufficient and therefore made the winding up order.

Court Disposition

Winding up order made against Lisgold Holdings Ltd.

Orders

  • Winding up order made against Lisgold Holdings Ltd.