RE HUA HAN HEALTH INDUSTRY HOLDINGS LTD

RE HUA HAN HEALTH INDUSTRY HOLDINGS LTD

The court granted a regulating order under s227A/227B because it was satisfied that holding first meetings was impractical and uneconomical, that the four major creditors representing over 99% of creditor claims supported the JPL, that the JPL had conducted substantial investigative work and continuity and confidentiality justified dispensing with meetings and appointing the JPL as liquidators, and that constituting a committee of inspection of the four major creditors was fair and in creditors’ interests.

Citation
[2021] HKCFI 793
Parties
Company: Hua Han Health Industry Holdings Limited; Applicants / Provisional Liquidators: Chan Ho Yin and Chi Lai Man Jocelyn (Joint and Several Provisional Liquidators of Borrelli Walsh); Opposing Contributory: Taikang Life Insurance Co Ltd; Opposing Contributory: Bettertimes Company Limited; Opposing Contributory: Zhang Fan; Opposing Contributory: Brave Leader Limited; Opposing Contributory: Xindaxin Group Company Limited; Original Petitioner (debt Satisfied): Cypress House Capital Limited; Substituted Petitioner / Applicant for Provisional Liquidators: Haw Par Corporation Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 March 2021
Case Number
HCCW110/2019
Procedural Posture
Companies Winding‑up Proceedings / Application for Regulating Order Under Section 227 a Following Winding Up Order
Outcome
Regulating order granted
Legal Topics
Regulating Order, Appointment of Liquidators, Committee of Inspection, Dispensing First Meetings, Notice to Shareholders, Confidentiality of Investigations, Stay of Winding Up
Source Language
EN
Companies Law Insolvency Law Civil Procedure Regulating Order Appointment of Liquidators Committee of Inspection Dispensing First Meetings Notice to Shareholders +2 more

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Parties

Hua Han Health Industry Holdings Limited

Company

Chan Ho Yin and Chi Lai Man Jocelyn (Joint and Several Provisional Liquidators of Borrelli Walsh)

Applicants / Provisional Liquidators

Taikang Life Insurance Co Ltd

Opposing Contributory

Bettertimes Company Limited

Opposing Contributory

Zhang Fan

Opposing Contributory

Brave Leader Limited

Opposing Contributory

Xindaxin Group Company Limited

Opposing Contributory

Cypress House Capital Limited

Original Petitioner (debt Satisfied)

Haw Par Corporation Limited

Substituted Petitioner / Applicant for Provisional Liquidators

Official Receiver

Official Receiver

Procedural Posture

Companies Winding‑up Proceedings / Application for Regulating Order Under Section 227 a Following Winding Up Order

Legal Issues

  1. 1 Whether a regulating order under s227A/227B should be made
  2. 2 Whether to dispense with first meetings of creditors and contributories
  3. 3 Whether the provisional liquidators should be appointed as liquidators

Ratio Decidendi

The court granted a regulating order under s227A/227B because it was satisfied that holding first meetings was impractical and uneconomical, that the four major creditors representing over 99% of creditor claims supported the JPL, that the JPL had conducted substantial investigative work and continuity and confidentiality justified dispensing with meetings and appointing the JPL as liquidators, and that constituting a committee of inspection of the four major creditors was fair and in creditors’ interests.

Court Disposition

Regulating order granted

Orders

  • Dispense with the first meetings of creditors and contributories for the purpose of considering the appointment of a liquidator and a committee of inspection
  • Appoint Chan Ho Yin and Chi Lai Man Jocelyn of Borrelli Walsh Ltd as the Joint and Several Liquidators of Hua Han Health Industry Holdings Limited