RE CW ADVANCED TECHNOLOGIES LTD

RE CW ADVANCED TECHNOLOGIES LTD

Provisional liquidators were appointed because the Company admitted insolvency and the debt to BOC was undisputed (satisfying the threshold), and there was cogent evidence of irregularities and a real risk of dissipation such that independent investigation and asset preservation were necessary (satisfying the discretionary limb); the appointment was ordered without conferring powers to pursue debt restructuring at this stage.

Citation
[2018] HKCFI 1705
Parties
Company (petitioner Withdrew Own Application; Respondent to BOC Application): CW Advanced Technologies Limited; Creditor and Applicant for Appointment of Provisional Liquidators: Bank of China (Hong Kong) Limited; Amicus Curiae: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 July 2018
Case Number
HCCW174/2018
Procedural Posture
Companies Winding Up Proceedings and Application for Provisional Liquidation / Chambers Hearing and Reasons for Decision Appointing Provisional Liquidators
Outcome
Provisional liquidators appointed to CW Advanced Technologies Limited
Legal Topics
Provisional Liquidation, Scheme of Arrangement, Moratorium, Recognition of Foreign Insolvency Proceedings, Modified Universalism
Source Language
EN
Insolvency Law Cross Border Insolvency Company Law Corporate Restructuring Provisional Liquidation Scheme of Arrangement Moratorium Recognition of Foreign Insolvency Proceedings +1 more

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Parties

CW Advanced Technologies Limited

Company (petitioner Withdrew Own Application; Respondent to BOC Application)

Bank of China (Hong Kong) Limited

Creditor and Applicant for Appointment of Provisional Liquidators

Official Receiver

Amicus Curiae

Procedural Posture

Companies Winding Up Proceedings and Application for Provisional Liquidation / Chambers Hearing and Reasons for Decision Appointing Provisional Liquidators

Legal Issues

  1. 1 Whether provisional liquidators should be appointed to the Company
  2. 2 Whether threshold for winding-up likely to succeed is satisfied
  3. 3 Whether discretionary requirement for appointment (risk of asset dissipation or need for independent investigation) is met

Ratio Decidendi

Provisional liquidators were appointed because the Company admitted insolvency and the debt to BOC was undisputed (satisfying the threshold), and there was cogent evidence of irregularities and a real risk of dissipation such that independent investigation and asset preservation were necessary (satisfying the discretionary limb); the appointment was ordered without conferring powers to pursue debt restructuring at this stage.

Court Disposition

Provisional liquidators appointed to CW Advanced Technologies Limited

Orders

  • Appoint So Man Chun and Jong Yat Kit of PricewaterhouseCoopers as provisional liquidators of CW Advanced Technologies Limited (order dated 11 July 2018)
  • Provisional liquidators appointed without conferral of powers to pursue debt restructuring (but power to apply for extension of powers preserved)