RE LEE PRISCILLA HWANG

RE LEE PRISCILLA HWANG

The trustees proved multiple heads of unsatisfactory conduct and failure to co-operate: the bankrupts opposed US Chapter 15 and Turnover proceedings thereby obstructing trustees' access to US assets; post‑petition payments via OCHKL amounted to void preferential transactions; Raymond recharacterised amounts to avoid inclusion in his estate; Raymond failed to obtain and provide the GSA; both failed to disclose salary/benefits. These findings satisfied s 30A(4) and, on balancing creditors' interests and the gravity and consequences of the conduct, the court exercised its discretion to suspend the running of the discharge period (Raymond 18 months, Priscilla 15 months from 30 August 2013)...

Citation
RE LEE PRISCILLA HWANG
Parties
Trustee (applicant): John Robert Lees; Trustee (applicant): Mat Ng; Bankrupt (respondent): Lee Priscilla Hwang; Bankrupt (respondent): Lee Raymond Cho-Min
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 May 2014
Case Number
HCB7452/2009
Procedural Posture
Bankruptcy (application Under S 30 A(3) Bankruptcy Ordinance) / Hearing and Decision on Suspension of Discharge Period and Costs
Outcome
Application partly granted: suspension of running of discharge period ordered against both bankrupts and costs awarded to trustees
Legal Topics
Suspension of Automatic Discharge, Trustee Powers and Turnover, Non Cooperation With Trustees, Chapter 15 Recognition, Voidable Post Petition Transactions
Source Language
EN
Bankruptcy Law Cross Border Insolvency Civil Procedure Suspension of Automatic Discharge Trustee Powers and Turnover Non Cooperation With Trustees Chapter 15 Recognition Voidable Post Petition Transactions

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Parties

John Robert Lees

Trustee (applicant)

Mat Ng

Trustee (applicant)

Lee Priscilla Hwang

Bankrupt (respondent)

Lee Raymond Cho-Min

Bankrupt (respondent)

Procedural Posture

Bankruptcy (application Under S 30 A(3) Bankruptcy Ordinance) / Hearing and Decision on Suspension of Discharge Period and Costs

Legal Issues

  1. 1 Whether trustees established grounds under s 30A(4) to suspend automatic discharge under s 30A(3)
  2. 2 Whether the bankrupts' pre- and post-bankruptcy conduct amounted to unsatisfactory conduct not to be condoned
  3. 3 Whether oppositions in US Chapter 15 and Turnover proceedings and recharacterisation of debts constituted failure to co-operate with trustees

Ratio Decidendi

The trustees proved multiple heads of unsatisfactory conduct and failure to co-operate: the bankrupts opposed US Chapter 15 and Turnover proceedings thereby obstructing trustees' access to US assets; post‑petition payments via OCHKL amounted to void preferential transactions; Raymond recharacterised amounts to avoid inclusion in his estate; Raymond failed to obtain and provide the GSA; both failed to disclose salary/benefits. These findings satisfied s 30A(4) and, on balancing creditors' interests and the gravity and consequences of the conduct, the court exercised its discretion to suspend the running of the discharge period (Raymond 18 months, Priscilla 15 months from 30 August 2013)...

Court Disposition

Application partly granted: suspension of running of discharge period ordered against both bankrupts and costs awarded to trustees

Orders

  • Relevant period to cease to run for Raymond Lee for 18 months commencing 30 August 2013
  • Relevant period to cease to run for Priscilla Lee for 15 months commencing 30 August 2013