RE EASY CARRY LTD

RE EASY CARRY LTD

Contributories repeatedly failed to produce a concrete and signable restructuring proposal; provisional liquidation had been misused to delay creditor enforcement; accordingly the court must protect creditors by making winding-up orders for the companies and allowing the provisional liquidators to continue in office.

Citation
RE EASY CARRY LTD
Parties
Company (subject): Easy Carry Limited; Company (subject): K.C.K. Garment Factory Limited; Petitioning Creditor: China CITIC Bank International Limited; Contributory: Woo Koo Ping; Contributory: Woo Siu Hong Eric; Provisional Liquidators (appointed): Provisional Liquidators; Supporting Creditor: Ng Wai Chi; Creditor (appeared in Person): Lai Wai Fong; Creditor (appeared in Person): Leung Kwong Wa
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 October 2016
Case Number
HCCW297/2014
Procedural Posture
Companies (winding Up) Petitions Under the Companies (winding Up and Miscellaneous Provisions) Ordinance (cap 32) / Final Hearing/decision on Winding Up Petitions
Outcome
Winding-up orders made in respect of each of the five companies; provisional liquidators to continue in office.
Legal Topics
Winding Up, Provisional Liquidation, Restructuring, Moratorium on Enforcement
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Provisional Liquidation Restructuring Moratorium on Enforcement

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Parties

Easy Carry Limited

Company (subject)

K.C.K. Garment Factory Limited

Company (subject)

China CITIC Bank International Limited

Petitioning Creditor

Woo Koo Ping

Contributory

Woo Siu Hong Eric

Contributory

Provisional Liquidators

Provisional Liquidators (appointed)

Ng Wai Chi

Supporting Creditor

Lai Wai Fong

Creditor (appeared in Person)

Leung Kwong Wa

Creditor (appeared in Person)

Procedural Posture

Companies (winding Up) Petitions Under the Companies (winding Up and Miscellaneous Provisions) Ordinance (cap 32) / Final Hearing/decision on Winding Up Petitions

Legal Issues

  1. 1 Whether to make winding-up orders for five companies
  2. 2 Whether to further adjourn petitions to allow a restructuring proposal to be produced
  3. 3 Whether provisional liquidation had been misused as a mechanism for restructuring rather than to protect assets

Ratio Decidendi

Contributories repeatedly failed to produce a concrete and signable restructuring proposal; provisional liquidation had been misused to delay creditor enforcement; accordingly the court must protect creditors by making winding-up orders for the companies and allowing the provisional liquidators to continue in office.

Court Disposition

Winding-up orders made in respect of each of the five companies; provisional liquidators to continue in office.

Orders

  • Winding-up orders made in respect of each of the five companies.
  • The current provisional liquidators shall continue in office.