RE THE GRANDE HOLDINGS LTD

RE THE GRANDE HOLDINGS LTD

On a broad macroscopic assessment the audit confirmation together with the 31 December 2010 debenture and the provisional liquidators' acceptance that Gain Alpha advanced the funds established a probable entitlement to the sum claimed; the creditor's proof was therefore to be admitted for voting in the amount claimed (US$7,902,154.04) and the liquidators were not entitled at this stage to require further primary proof such as bank statements.

Citation
RE THE GRANDE HOLDINGS LTD
Parties
Creditor / Applicant: Gain Alpha Finance Limited; Company (debtor): The Grande Holdings Limited; Provisional Liquidators / Respondent: Provisional Liquidators of The Grande Holdings Limited; Original Vendor / Debenture Beneficiary: Mr Jurick; Lender / Secured Creditor: Kingston Securities Ltd; Beneficial Lender / Controller of Gain Alpha: Mr Ko
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 November 2014
Case Number
HCCW177/2011
Procedural Posture
Companies (winding Up) / Chambers Hearing on Summons: Appeal Against Provisional Liquidators' Refusal to Admit Proof for Voting Purposes (application for Declaration to Admit Proof)
Outcome
Order granted. The creditor's proof of debt admitted in full for voting in the sum of US$7,902,154.04. Costs of the application to be paid out of the company's assets with a certificate for two counsel.
Legal Topics
Proof of Debt, Voting at Creditors' Meeting, Debenture, Admission of Proof, Liquidator's Decision, Standard of Review
Source Language
EN
Insolvency Company Law Civil Procedure Proof of Debt Voting at Creditors' Meeting Debenture Admission of Proof Liquidator's Decision +1 more

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Parties

Gain Alpha Finance Limited

Creditor / Applicant

The Grande Holdings Limited

Company (debtor)

Provisional Liquidators of The Grande Holdings Limited

Provisional Liquidators / Respondent

Mr Jurick

Original Vendor / Debenture Beneficiary

Kingston Securities Ltd

Lender / Secured Creditor

Mr Ko

Beneficial Lender / Controller of Gain Alpha

Procedural Posture

Companies (winding Up) / Chambers Hearing on Summons: Appeal Against Provisional Liquidators' Refusal to Admit Proof for Voting Purposes (application for Declaration to Admit Proof)

Legal Issues

  1. 1 Whether the creditor's proof of debt should be admitted for voting purposes
  2. 2 Whether the audit confirmation and 31 December 2010 debenture establish the amount owed
  3. 3 Whether the provisional liquidators were entitled to require further primary proof (eg bank statements) at this stage

Ratio Decidendi

On a broad macroscopic assessment the audit confirmation together with the 31 December 2010 debenture and the provisional liquidators' acceptance that Gain Alpha advanced the funds established a probable entitlement to the sum claimed; the creditor's proof was therefore to be admitted for voting in the amount claimed (US$7,902,154.04) and the liquidators were not entitled at this stage to require further primary proof such as bank statements.

Court Disposition

Order granted. The creditor's proof of debt admitted in full for voting in the sum of US$7,902,154.04. Costs of the application to be paid out of the company's assets with a certificate for two counsel.

Orders

  • Declare that Gain Alpha Finance Limited's proof of debt submitted on 12 March 2014 is admitted for voting in the amount of US$7,902,154.04
  • Costs of the application to be paid out of the assets of The Grande Holdings Limited with a certificate for two counsel