RE STX PAN OCEAN (HONG KONG) CO., LTD (In Liquidation)

RE STX PAN OCEAN (HONG KONG) CO., LTD (In Liquidation)

The court declined to depart from the ordinary rule and ordered Rostrum’s costs (both as petitioner after substitution and modest supporting creditor costs before substitution) to be paid out of the company’s assets because the majority of contested costs arose after substitution, a substantial and relatively...

Source-derived case information.

Citation
RE STX PAN OCEAN (HONG KONG) CO., LTD (In Liquidation)
Parties
Company (in Liquidation): STX Pan Ocean (Hong Kong) Co., Limited (In Liquidation); Petitioner: Rostrum; Opposing Creditor: PO Korea
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 November 2014
Case Number
HCCW324/2013
Procedural Posture
Companies (winding Up) / Costs Determination After Winding Up Order
Outcome
Rostrum’s costs to be paid out of the company’s assets; no order as to costs against opposing creditors including PO Korea; no order as to costs for the superseded provisional liquidators application; voluntary liquidators’ and Official Receiver’s reasonable costs to be paid out of company assets.
Legal Topics
Winding Up, Liquidation, Provisional Liquidators, Costs Orders, Creditors' Meetings, Conflict of Interest, Substitution of Petitioner, Investigation
Source Language
en
Company Law Insolvency Law Civil Procedure (costs) Winding Up Liquidation Provisional Liquidators Costs Orders Creditors' Meetings +3 more

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Parties

STX Pan Ocean (Hong Kong) Co., Limited (In Liquidation)

Company (in Liquidation)

Rostrum

Petitioner

PO Korea

Opposing Creditor

Procedural Posture

Companies (winding Up) / Costs Determination After Winding Up Order

Legal Issues

  1. 1 Whether the petitioner’s (Rostrum) costs should be paid out of the company’s assets or ordered to be paid by PO Korea
  2. 2 Costs order in relation to the superseded application for appointment of provisional liquidators

Ratio Decidendi

The court declined to depart from the ordinary rule and ordered Rostrum’s costs (both as petitioner after substitution and modest supporting creditor costs before substitution) to be paid out of the company’s assets because the majority of contested costs arose after substitution, a substantial and relatively independent body of creditors opposed the petition, and there was insufficient evidence that PO Korea’s opposition was solely or improperly motivated to justify charging PO Korea with Rostrum’s costs; the application for provisional liquidators was superseded and there should be no order as to its costs; reasonable costs of the voluntary liquidators and any Official Receiver are to...

Court Disposition

Rostrum’s costs to be paid out of the company’s assets; no order as to costs against opposing creditors including PO Korea; no order as to costs for the superseded provisional liquidators application; voluntary liquidators’ and Official Receiver’s reasonable costs to be paid out of company assets.

Orders

  • Rostrum’s costs as the petitioner after the substitution (including costs of written submissions on costs) and Rostrum’s costs as supporting creditor before the substitution to be paid out of the assets of the company as a liquidation expense, with a certificate for two counsel, to be taxed on a party and party...
  • No order as to the costs of any opposing creditor including PO Korea.