RE: YEUNG LIU WING CHAU, PAMELA ("the Debtor") and EX PARTE: LI MEI TRADING CO. ("the Petitioner")

RE: YEUNG LIU WING CHAU, PAMELA ("the Debtor") and EX PARTE: LI MEI TRADING CO. ("the Petitioner")

Bankruptcy orders were made and the adjournment refused because the admitted debt was substantial and the proposed repayment plan was speculative and unsupported by evidence of likely future profits or continued employment; therefore the proposal did not provide a reliable means of repayment to justify delaying bankruptcy orders.

Citation
RE: YEUNG LIU WING CHAU, PAMELA ("the Debtor") and EX PARTE: LI MEI TRADING CO. ("the Petitioner")
Parties
Petitioner: Li Mei Trading Company; Debtor: Yeung Liu Wing Chau, Pamela; Debtor: Yeung Kai Fai, Frank
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 March 2000
Case Number
HCB3637/1999
Procedural Posture
Bankruptcy Petition / Hearing of Bankruptcy Petitions; Bankruptcy Orders Made; Application for Two Week Adjournment Refused
Outcome
Bankruptcy orders made against the debtors; application for two-week adjournment refused.
Legal Topics
Bankruptcy Order, Guarantee Debt, Restructuring, Adjournment Application, Repayment Proposal Viability
Source Language
EN
Bankruptcy Insolvency Company Law Bankruptcy Order Guarantee Debt Restructuring Adjournment Application Repayment Proposal Viability

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Parties

Li Mei Trading Company

Petitioner

Yeung Liu Wing Chau, Pamela

Debtor

Yeung Kai Fai, Frank

Debtor

Procedural Posture

Bankruptcy Petition / Hearing of Bankruptcy Petitions; Bankruptcy Orders Made; Application for Two Week Adjournment Refused

Legal Issues

  1. 1 Whether the debtors' 18-instalment repayment proposal was sufficiently viable to avoid bankruptcy orders
  2. 2 Whether the court should grant a short adjournment pending corporate restructuring and related proceedings
  3. 3 Whether speculative future profits and continued employment could be relied on as evidence of ability to pay

Ratio Decidendi

Bankruptcy orders were made and the adjournment refused because the admitted debt was substantial and the proposed repayment plan was speculative and unsupported by evidence of likely future profits or continued employment; therefore the proposal did not provide a reliable means of repayment to justify delaying bankruptcy orders.

Court Disposition

Bankruptcy orders made against the debtors; application for two-week adjournment refused.

Orders

  • Bankruptcy orders made against Yeung Liu Wing Chau, Pamela and Yeung Kai Fai, Frank.
  • Application for a two-week adjournment refused.