RE KING PACIFIC INTERNATIONAL HOLDINGS LTD.

RE KING PACIFIC INTERNATIONAL HOLDINGS LTD.

The court is bound by the Court of Appeal in Bank Negara Indonesia that it has no jurisdiction to grant a stay of winding-up proceedings on the company's application; the two added applicants as alleged creditors have locus to apply under s.209 but the evidence failed to establish special circumstances to depart...

Source-derived case information.

Citation
RE KING PACIFIC INTERNATIONAL HOLDINGS LTD.
Parties
Petitioner: Goodragon Limited; Company: King Pacific International Holdings Limited; Applicant (creditor): Ocean Palace Restaurant and Nightclub Limited; Applicant (creditor): Yiu Wing Construction Company Limited; Official Receiver and Provisional Liquidator: Official Receiver; Supporting Creditor: Whole Earth Holdings Ltd; Supporting Creditor: Wong Yim Wah; Supporting Creditor: Frank Yu; Supporting Creditor: Li Pui Kwan; Supporting Creditor: Sit Yik Leung; Supporting Creditor: Wilson Tang; Supporting Creditor: Cheng Kwok Wo; Supporting Creditor: Chan Shing Yip Alan; Supporting Creditor: Man Yuk Yi; Supporting Creditor: Lee Pik Chun; Supporting Creditor: Stevenson Wong & Co; Supporting Creditor: Industrial and Commercial Bank of China; Supporting Creditor: Winbest Resources Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 June 2002
Case Number
HCCW164/2002
Procedural Posture
Companies (winding Up) / Post Winding Up Order Application for Stay Pending Appeal
Outcome
Application dismissed
Legal Topics
Winding Up, Stay Pending Appeal, Jurisdiction to Grant Stay, Corporate Rescue, Appointment of Special Managers
Source Language
en
Company Law Insolvency Civil Procedure Winding Up Stay Pending Appeal Jurisdiction to Grant Stay Corporate Rescue Appointment of Special Managers

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Parties

Goodragon Limited

Petitioner

King Pacific International Holdings Limited

Company

Ocean Palace Restaurant and Nightclub Limited

Applicant (creditor)

Yiu Wing Construction Company Limited

Applicant (creditor)

Official Receiver

Official Receiver and Provisional Liquidator

Whole Earth Holdings Ltd

Supporting Creditor

Wong Yim Wah

Supporting Creditor

Frank Yu

Supporting Creditor

Li Pui Kwan

Supporting Creditor

Sit Yik Leung

Supporting Creditor

Wilson Tang

Supporting Creditor

Cheng Kwok Wo

Supporting Creditor

Chan Shing Yip Alan

Supporting Creditor

Man Yuk Yi

Supporting Creditor

Lee Pik Chun

Supporting Creditor

Stevenson Wong & Co

Supporting Creditor

Industrial and Commercial Bank of China

Supporting Creditor

Winbest Resources Limited

Supporting Creditor

Procedural Posture

Companies (winding Up) / Post Winding Up Order Application for Stay Pending Appeal

Legal Issues

  1. 1 Whether court has jurisdiction to grant a stay of winding-up proceedings on application by the company
  2. 2 Whether applicants who are creditors have locus to apply for a stay under s.209
  3. 3 Whether special circumstances exist to justify departing from the practice of not granting stays pending appeal

Ratio Decidendi

The court is bound by the Court of Appeal in Bank Negara Indonesia that it has no jurisdiction to grant a stay of winding-up proceedings on the company's application; the two added applicants as alleged creditors have locus to apply under s.209 but the evidence failed to establish special circumstances to depart from the established practice of not granting stays pending appeal (the restructuring proposal was preliminary, major creditors and the Official Receiver were not properly engaged), therefore the stay application must be dismissed.

Court Disposition

Application dismissed

Orders

  • Leave granted to amend the summons to add Ocean Palace Restaurant and Nightclub Limited and Yiu Wing Construction Company Limited as applicants
  • Application for a stay of the winding-up proceedings pending appeal dismissed