RE JINRO (HK) INTERNATIONAL LTD

RE JINRO (HK) INTERNATIONAL LTD

The court exercised its discretion to appoint provisional liquidators because the petitioners established the requisite prima facie case for winding up, there were real prospects that provisional liquidators could preserve and realise value in Jinro Japan and cooperate with the Korean receiver and KPMG, and independent interim management was necessary to protect the distinct interests of the Company's creditors which might diverge from those of Jinro Korea.

Citation
RE JINRO (HK) INTERNATIONAL LTD
Parties
Petitioning Creditor: Goldman Sachs International; Petitioning Creditor: Goldman Sachs (Asia) Finance; Respondent / Company: Jinro (H.K.) International Limited; Supporting Creditor: Avenue Asia International Limited; Supporting Creditor: Avenue Asia Investments, L.P.; Interested Party / Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 July 2003
Case Number
HCCW1352/2001
Procedural Posture
Companies (winding‑up) / Application for Appointment of Provisional Liquidators After Substantive Hearing of Winding‑up Petition; Petition Adjourned Pending Report
Outcome
Application granted; provisional liquidators appointed subject to conditions
Legal Topics
Provisional Liquidators, Winding‑up Petition, Receivership, Interim Preservation of Assets, International Cooperation
Source Language
EN
Corporate Insolvency Company Law Cross‑border Insolvency Restructuring and Rescue Provisional Liquidators Winding‑up Petition Receivership Interim Preservation of Assets +1 more

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Parties

Goldman Sachs International

Petitioning Creditor

Goldman Sachs (Asia) Finance

Petitioning Creditor

Jinro (H.K.) International Limited

Respondent / Company

Avenue Asia International Limited

Supporting Creditor

Avenue Asia Investments, L.P.

Supporting Creditor

Official Receiver

Interested Party / Official Receiver

Procedural Posture

Companies (winding‑up) / Application for Appointment of Provisional Liquidators After Substantive Hearing of Winding‑up Petition; Petition Adjourned Pending Report

Legal Issues

  1. 1 Whether provisional liquidators should be appointed under section 193 of the Companies Ordinance
  2. 2 Whether petitioners have shown a good prima facie case for winding up
  3. 3 Whether appointment is appropriate given parallel Korean reorganisation and receiver

Ratio Decidendi

The court exercised its discretion to appoint provisional liquidators because the petitioners established the requisite prima facie case for winding up, there were real prospects that provisional liquidators could preserve and realise value in Jinro Japan and cooperate with the Korean receiver and KPMG, and independent interim management was necessary to protect the distinct interests of the Company's creditors which might diverge from those of Jinro Korea.

Court Disposition

Application granted; provisional liquidators appointed subject to conditions

Orders

  • Leave granted to petitioners to amend the summons for appointment of provisional liquidators and order made in terms of paragraphs 1 to 3 of the amended summons filed 20 June 2003
  • Appointment of Mr Kelvin Edward Flynn, Mr Roderick John Sutton and Mr Desmond Chung Seng Chiong of Ferrier Hodgson Limited jointly and severally as provisional liquidators of Jinro (H.K.) International Limited until further order, conditional upon the petitioners undertaking as to damages