RE HONG KONG BREWING & RESTAURANTS LTD.

RE HONG KONG BREWING & RESTAURANTS LTD.

The court refused further adjournment and made a compulsory winding-up order because the proposed restructuring lacked credible and early demonstrated 'in principle' creditor support, Cox's claim of $19 million was questionable due to a retrospective management agreement and related-party control, and the Company...

Source-derived case information.

Citation
RE HONG KONG BREWING & RESTAURANTS LTD.
Parties
Petitioner: Henry Cornell; Respondent/company: Hong Kong Brewing & Restaurants Limited; Official Receiver: Official Receiver; Creditor: Cox Investment Corporation; Director/shareholder: Glenn James Kerrigan; Director/shareholder: Rosemary Lee
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 November 1999
Case Number
HCCW664/1999
Procedural Posture
Companies Winding Up Petition / Final Judgment (compulsory Winding Up Order)
Outcome
Compulsory winding-up order made against Hong Kong Brewing & Restaurants Limited
Legal Topics
Winding Up, Restructuring, Related Party Transactions, Management Agreement, Proof of Debt, Adjournment for Compromise
Source Language
en
Company Law Insolvency Law Contract Law Winding Up Restructuring Related Party Transactions Management Agreement Proof of Debt +1 more

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Parties

Henry Cornell

Petitioner

Hong Kong Brewing & Restaurants Limited

Respondent/company

Official Receiver

Official Receiver

Cox Investment Corporation

Creditor

Glenn James Kerrigan

Director/shareholder

Rosemary Lee

Director/shareholder

Procedural Posture

Companies Winding Up Petition / Final Judgment (compulsory Winding Up Order)

Legal Issues

  1. 1 Whether the petition should be adjourned to permit a proposed restructuring
  2. 2 Whether the alleged $19 million debt owed to Cox is valid and constitutes a substantial creditor claim
  3. 3 Whether the retrospective management agreement is enforceable and gives rise to genuine fees

Ratio Decidendi

The court refused further adjournment and made a compulsory winding-up order because the proposed restructuring lacked credible and early demonstrated 'in principle' creditor support, Cox's claim of $19 million was questionable due to a retrospective management agreement and related-party control, and the Company failed to address serious, well founded concerns despite opportunity to do so.

Court Disposition

Compulsory winding-up order made against Hong Kong Brewing & Restaurants Limited

Orders

  • Compulsory winding-up order made against Hong Kong Brewing & Restaurants Limited
  • No further adjournment granted