RE LI YONGHONG

RE LI YONGHONG

The Debtor failed to establish a bona fide dispute on substantial grounds. The 'no valid demand' point was not pleaded and in any event lacked merit because the Guarantee operated as a principal debtor clause dispensing with a demand or, alternatively, the statutory demand served on 18 October 2024 constituted a valid demand. The disputes on quantum (interest calculation, financing fees, alleged set-off) did not demonstrate injustice because even accepting the Debtor's contentions the undisputed liability remained substantial (approximately US$165.8 million) and the Debtor made no payments or credible attempt to pay. Accordingly a bankruptcy order was properly made.

Citation
[2025] HKCFI 3307
Parties
1st Petitioner: SHENG RONG STABLE INVESTMENT FUND LIMITED; 2nd Petitioner: ZHI HUA STABLE INVESTMENT FUND LIMITED; 3rd Petitioner: SHEN ZHOU LONG YUAN INDUSTRY INVESTMENT FUND LIMITED; 4th Petitioner: ZHU HUA CHENG RONG INDUSTRY INVESTMENT FUND LIMITED; 5th Petitioner: LONG TENG ZHI ZHONG INDUSTRY INVESTMENT FUND LIMITED; Debtor: LI YONGHONG; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 July 2025
Case Number
HCB874/2025
Procedural Posture
Bankruptcy Proceedings / Hearing on Petition; Bankruptcy Order Made
Outcome
Bankruptcy order made against the Debtor Li Yonghong
Legal Topics
Statutory Demand, Bona Fide Dispute, Guarantee Enforcement, Demand Requirement, Set Off, Interest Calculation
Source Language
EN
Insolvency Bankruptcy Contract Commercial Law Security and Guarantees Statutory Demand Bona Fide Dispute Guarantee Enforcement +3 more

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Parties

SHENG RONG STABLE INVESTMENT FUND LIMITED

1st Petitioner

ZHI HUA STABLE INVESTMENT FUND LIMITED

2nd Petitioner

SHEN ZHOU LONG YUAN INDUSTRY INVESTMENT FUND LIMITED

3rd Petitioner

ZHU HUA CHENG RONG INDUSTRY INVESTMENT FUND LIMITED

4th Petitioner

LONG TENG ZHI ZHONG INDUSTRY INVESTMENT FUND LIMITED

5th Petitioner

LI YONGHONG

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Hearing on Petition; Bankruptcy Order Made

Legal Issues

  1. 1 Whether the statutory demand constituted a valid demand under the Guarantee
  2. 2 Whether the Debtor established a bona fide dispute on substantial grounds to resist the bankruptcy petition
  3. 3 Whether the quantum claimed (interest, financing fees, alleged set-off) was materially incorrect such that injustice would be caused by making a bankruptcy order

Ratio Decidendi

The Debtor failed to establish a bona fide dispute on substantial grounds. The 'no valid demand' point was not pleaded and in any event lacked merit because the Guarantee operated as a principal debtor clause dispensing with a demand or, alternatively, the statutory demand served on 18 October 2024 constituted a valid demand. The disputes on quantum (interest calculation, financing fees, alleged set-off) did not demonstrate injustice because even accepting the Debtor's contentions the undisputed liability remained substantial (approximately US$165.8 million) and the Debtor made no payments or credible attempt to pay. Accordingly a bankruptcy order was properly made.

Court Disposition

Bankruptcy order made against the Debtor Li Yonghong

Orders

  • Bankruptcy order made against Li Yonghong