RE KARSUN INTERNATIONAL (HOLDINGS) LTD.

RE KARSUN INTERNATIONAL (HOLDINGS) LTD.

The court made a winding up order because the Company failed to produce a viable, funded proposal to discharge its debts, payments promised were not made, the security could only cover part of the debt leaving an unsecured balance, and the opposition to the petition was not based on any substantial ground, making further adjournments futile.

Citation
RE KARSUN INTERNATIONAL (HOLDINGS) LTD.
Parties
Petitioner: Petitioner (bank/creditor); Respondent (company): Karsun International (Holdings) Limited; Official Receiver / Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 October 1999
Case Number
HCCW627/1999
Procedural Posture
Winding Up Petition Under Companies Ordinance Cap.32 / Judgment on Winding Up Petition (court of First Instance)
Outcome
Winding up order made against Karsun International (Holdings) Limited
Legal Topics
Winding Up, Unpaid Debt, Secured Creditor Vs Unsecured Balance, Adjournment Application
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Unpaid Debt Secured Creditor Vs Unsecured Balance Adjournment Application

Case Brief

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Parties

Petitioner (bank/creditor)

Petitioner

Karsun International (Holdings) Limited

Respondent (company)

Official Receiver

Official Receiver / Interested Party

Procedural Posture

Winding Up Petition Under Companies Ordinance Cap.32 / Judgment on Winding Up Petition (court of First Instance)

Legal Issues

  1. 1 Whether a winding up order should be made against the Company for unpaid debts
  2. 2 Whether the Company's proposed sale and instalment proposal was a viable alternative to winding up
  3. 3 Whether the Petitioner's security prevents winding up in respect of the unpaid balance

Ratio Decidendi

The court made a winding up order because the Company failed to produce a viable, funded proposal to discharge its debts, payments promised were not made, the security could only cover part of the debt leaving an unsecured balance, and the opposition to the petition was not based on any substantial ground, making further adjournments futile.

Court Disposition

Winding up order made against Karsun International (Holdings) Limited

Orders

  • Winding up order made