Re Supreme Million Ltd.

Re Supreme Million Ltd.

Because key creditors (notably Standard Chartered and the petitioner) opposed the restructuring and the proposal depended on unanimous lender agreement and future, unformulated documentation, an adjournment would be futile and costly; accordingly the court refused the adjournment and made winding‑up orders.

Citation
Re Supreme Million Ltd.
Parties
Respondent (company to Be Wound Up): Wah Lee Resources Company Limited; Respondent (company to Be Wound Up): Supreme Million Limited; Respondent (company to Be Wound Up): Linfa Industrial Company Limited; Respondent (company to Be Wound Up): Wah Lee Trading Company Limited; Associated Holding Company (subject of Separate Bermuda Petition): Wah Lee Resources Holdings Limited; Petitioner: ABSA Asia Limited; Supporting Creditor / Petitioning Creditor in Related Proceedings: Standard Chartered Bank; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 February 2000
Case Number
HCCW1048/1999
Procedural Posture
Companies Winding Up Proceedings / Application for Adjournment Refused; Winding‑up Orders Made
Outcome
Companies' application for adjournment refused; winding‑up orders made against the four companies
Legal Topics
Winding Up, Adjournment, Restructuring Proposals, Creditors' Consent, Scheme of Arrangement (s.166)
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Adjournment Restructuring Proposals Creditors' Consent Scheme of Arrangement (s.166)

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Parties

Wah Lee Resources Company Limited

Respondent (company to Be Wound Up)

Supreme Million Limited

Respondent (company to Be Wound Up)

Linfa Industrial Company Limited

Respondent (company to Be Wound Up)

Wah Lee Trading Company Limited

Respondent (company to Be Wound Up)

Wah Lee Resources Holdings Limited

Associated Holding Company (subject of Separate Bermuda Petition)

ABSA Asia Limited

Petitioner

Standard Chartered Bank

Supporting Creditor / Petitioning Creditor in Related Proceedings

Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up Proceedings / Application for Adjournment Refused; Winding‑up Orders Made

Legal Issues

  1. 1 Whether the court should grant an adjournment to permit implementation of a creditor restructuring/self‑rescue plan
  2. 2 Whether creditor opposition (notably of a major creditor) defeats a proposed rescue and justifies refusing an adjournment
  3. 3 Whether the proposed arrangement constituted a proper scheme under section 166 or a private withdrawal of petitions dependent on unanimous creditor agreement

Ratio Decidendi

Because key creditors (notably Standard Chartered and the petitioner) opposed the restructuring and the proposal depended on unanimous lender agreement and future, unformulated documentation, an adjournment would be futile and costly; accordingly the court refused the adjournment and made winding‑up orders.

Court Disposition

Companies' application for adjournment refused; winding‑up orders made against the four companies

Orders

  • Application for adjournment refused
  • Winding‑up orders made in respect of Wah Lee Resources Company Limited, Supreme Million Limited, Linfa Industrial Company Limited and Wah Lee Trading Company Limited