Re: YANG YEE KWAN, HENRY and Ex parte: FORTIS BANK ASIA HK, formerly known as GENERALE BELGIAN BANK

Re: YANG YEE KWAN, HENRY and Ex parte: FORTIS BANK ASIA HK, formerly known as GENERALE BELGIAN BANK

The 12 August 1997 Guarantee remained effective; the 16 November 1999 letter did not replace it; the bank was contractually entitled to call in the facilities; there was no evidence of any settlement by Choy affecting the bank's rights; the sale price was not shown to be below market so the debt remained proved; accordingly a bankruptcy order should be made against the debtor.

Citation
Re: YANG YEE KWAN, HENRY and Ex parte: FORTIS BANK ASIA HK, formerly known as GENERALE BELGIAN BANK
Parties
Petitioner: Fortis Bank Asia HK (formerly Generale Belgian Bank); Debtor: Yang Yee Kwan, Henry; Borrower/company: Whole Right Development Ltd; Co Guarantor: Choy Ping Chung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 February 2001
Case Number
HCB1512/2000
Procedural Posture
Bankruptcy Proceedings / Judgment (bankruptcy Order Made)
Outcome
Bankruptcy order made against Yang Yee Kwan, Henry
Legal Topics
Statutory Demand, Bankruptcy Order, Interpretation of Guarantee, Mortgagee Sale, Joint and Several Liability, Use of Government Guaranteed Funds
Source Language
EN
Bankruptcy Contract Guarantee Property Secured Transactions Statutory Demand Bankruptcy Order Interpretation of Guarantee +3 more

Case Brief

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Parties

Fortis Bank Asia HK (formerly Generale Belgian Bank)

Petitioner

Yang Yee Kwan, Henry

Debtor

Whole Right Development Ltd

Borrower/company

Choy Ping Chung

Co Guarantor

Procedural Posture

Bankruptcy Proceedings / Judgment (bankruptcy Order Made)

Legal Issues

  1. 1 Whether the 1997 guarantee remained in force or was replaced by the 16 November 1999 letter
  2. 2 Whether the bank was entitled to call in facilities because of a fall in the value of charged properties
  3. 3 Whether funds guaranteed under the SME Scheme were improperly applied by the bank

Ratio Decidendi

The 12 August 1997 Guarantee remained effective; the 16 November 1999 letter did not replace it; the bank was contractually entitled to call in the facilities; there was no evidence of any settlement by Choy affecting the bank's rights; the sale price was not shown to be below market so the debt remained proved; accordingly a bankruptcy order should be made against the debtor.

Court Disposition

Bankruptcy order made against Yang Yee Kwan, Henry

Orders

  • The usual bankruptcy order made against Yang Yee Kwan, Henry