RE MANN, KEVIN PATRICK

Parties

Procedural Posture

Bankruptcy Petition / Hearing — Judgment (usual Bankruptcy Order and Costs Order Nisi)

Legal Issues

1. 1 Whether the petitions should be adjourned or stayed pending foreign litigation and recovery under third‑party government guarantee
2. 2 Whether the petitioning creditor is a secured creditor for purposes of the Bankruptcy Ordinance because of the government guarantee
3. 3 Whether the debt is bona fide disputed on substantial grounds by the debtors such that the petitions should be dismissed

Ratio Decidendi

The bank was entitled to the usual bankruptcy order because the statutory demands were not complied with, the Bank proved the debt, the debtors failed to demonstrate a bona fide defence on substantial grounds or that the Australian litigation offered a realistic timetable or prospect to repay the Bank, and the government guarantee did not make the Bank a secured creditor nor obligate it to pursue the government first; therefore adjournment or dismissal was refused and bankruptcy orders made.

Court Disposition

Usual bankruptcy order to be made against Kevin Patrick Mann and Chung Yan Hilda Li; order nisi for costs in favour of the Bank.

Orders

• Usual bankruptcy order against Kevin Patrick Mann and Chung Yan Hilda Li
• Order nisi that costs of each Petition, including all costs reserved, be to The Hongkong and Shanghai Banking Corporation Limited