RE LI WING SANG

RE LI WING SANG

The statutory demand was not set aside: the debtor failed to provide expert or transactional evidence to show the Hanergy shares had market value at the date of the demand that equalled or exceeded the petition debt; the petitioners valuation was not shown to be wrong in a way that caused prejudice to the debtor and later sales could not safely be used to infer earlier market value.

Citation
[2019] HKCFI 924
Parties
Creditor: Petitioner; Debtor: Debtor
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 April 2019
Case Number
HCB4740/2018
Procedural Posture
Bankruptcy Petition / Petition Hearing
Outcome
Debtors challenge to the statutory demand dismissed; statutory demand and petition upheld to proceed
Legal Topics
Statutory Demand, Valuation of Security, Set Aside Petition, Secured Debt, Evidence
Source Language
EN
Bankruptcy Law Security Interests Company Law Civil Procedure Statutory Demand Valuation of Security Set Aside Petition Secured Debt +1 more

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Parties

Petitioner

Creditor

Debtor

Debtor

Procedural Posture

Bankruptcy Petition / Petition Hearing

Legal Issues

  1. 1 Whether the statutory demand was defective because of an incorrect valuation of the security
  2. 2 Whether the debtor had a cross-claim exceeding the petition debt
  3. 3 Whether the petitioner was fully secured or willing to relinquish security

Ratio Decidendi

The statutory demand was not set aside: the debtor failed to provide expert or transactional evidence to show the Hanergy shares had market value at the date of the demand that equalled or exceeded the petition debt; the petitioners valuation was not shown to be wrong in a way that caused prejudice to the debtor and later sales could not safely be used to infer earlier market value.

Court Disposition

Debtors challenge to the statutory demand dismissed; statutory demand and petition upheld to proceed

Orders

  • Debtors challenge to the statutory demand dismissed
  • Petition to proceed (statutory demand held valid)