RE YOUNG CRUISE CO. LTD.

RE YOUNG CRUISE CO. LTD.

The court approved the compromise and made the draft order because the petitioner and major creditors agreed on alternative liquidators, proper notice was given to all creditors and contributories, no objections were received, and therefore it was appropriate for the court to appoint the agreed liquidators and constitute the agreed committee of inspection.

Citation
RE YOUNG CRUISE CO. LTD.
Parties
Petitioner (creditor): Lief Petroleum Pty Ltd; Company (subject of Winding Up): Young Cruise Company Limited (formerly Fortune Oil Company Limited); Official Receiver: Official Receiver; Creditor: Roman Spring International Limited; Creditor: First Level Holdings Limited; Creditor: Vitol S.A.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 September 2001
Case Number
HCCW788/2000
Procedural Posture
Companies Winding Up Proceedings / Hearing on Appointment of Liquidators Following Creditors' Meeting and Reported Compromise
Outcome
Order made in terms of the draft order approving appointment of agreed liquidators and committee of inspection
Legal Topics
Liquidator Appointment, Committee of Inspection, Creditor Voting, Conflict of Interest, Compromise of Disputes
Source Language
EN
Company Law Insolvency Civil Procedure Liquidator Appointment Committee of Inspection Creditor Voting Conflict of Interest Compromise of Disputes

Case Brief

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Parties

Lief Petroleum Pty Ltd

Petitioner (creditor)

Young Cruise Company Limited (formerly Fortune Oil Company Limited)

Company (subject of Winding Up)

Official Receiver

Official Receiver

Roman Spring International Limited

Creditor

First Level Holdings Limited

Creditor

Vitol S.A.

Creditor

Procedural Posture

Companies Winding Up Proceedings / Hearing on Appointment of Liquidators Following Creditors' Meeting and Reported Compromise

Legal Issues

  1. 1 Whether the creditors' resolution to appoint nominated liquidators was tainted by related-party interests and therefore objectionable
  2. 2 Whether the court should approve a compromise between the petitioner and certain creditors to appoint alternative liquidators
  3. 3 Whether proper notice to creditors and contributories and absence of objections permits the court to make the proposed order

Ratio Decidendi

The court approved the compromise and made the draft order because the petitioner and major creditors agreed on alternative liquidators, proper notice was given to all creditors and contributories, no objections were received, and therefore it was appropriate for the court to appoint the agreed liquidators and constitute the agreed committee of inspection.

Court Disposition

Order made in terms of the draft order approving appointment of agreed liquidators and committee of inspection

Orders

  • Appoint Mr Matthew O'Driscoll and Mr Stephen Liu of Ernst & Young as joint and several liquidators of Young Cruise Company Limited (formerly Fortune Oil Company Limited).
  • Constitute a committee of inspection comprising Bank International Ningbo, Lief Petroleum Pty Ltd (the Petitioner), First Level Holdings Limited, Roman Spring International Limited and Fortune Oil Plc.