RE AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LTD

RE AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LTD

Because the contributories repeatedly failed to produce a concrete, signable restructuring agreement and the provisional liquidation jurisdiction was being misused as a de facto moratorium to the detriment of creditors, the court must make winding-up orders for the companies and allow the provisional liquidators to continue in office to protect and realise assets for creditors.

Citation
RE AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LTD
Parties
Company: Easy Carry Limited; Company: K.C.K. Garment Factory Limited; Provisional Liquidators: Provisional Liquidators; Contributories: Contributories; Contributory: Woo Koo Ping; Contributory: Woo Siu Hong Eric; Petitioner/creditor: China CITIC Bank International Limited; Supporting Creditor: Ng Wai Chi; Creditor: Lai Wai Fong; Creditor: Leung Kwong Wa; Judge: Jonathan Harris
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 October 2016
Case Number
HCCW301/2014
Procedural Posture
Companies (winding Up) Petitions / Hearing/decision Winding Up Orders Made
Outcome
Winding-up orders made in respect of the five companies; provisional liquidators to continue in office
Legal Topics
Winding Up, Provisional Liquidation, Restructuring, Creditors' Rights, Jurisdictional Misuse
Source Language
EN
Insolvency Company Law Civil Procedure Winding Up Provisional Liquidation Restructuring Creditors' Rights Jurisdictional Misuse

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Parties

Easy Carry Limited

Company

K.C.K. Garment Factory Limited

Company

Provisional Liquidators

Provisional Liquidators

Contributories

Contributories

Woo Koo Ping

Contributory

Woo Siu Hong Eric

Contributory

China CITIC Bank International Limited

Petitioner/creditor

Ng Wai Chi

Supporting Creditor

Lai Wai Fong

Creditor

Leung Kwong Wa

Creditor

Jonathan Harris

Judge

Procedural Posture

Companies (winding Up) Petitions / Hearing/decision Winding Up Orders Made

Legal Issues

  1. 1 Whether to make winding-up orders given failure to produce a firm restructuring proposal
  2. 2 Whether provisional liquidation was being misused as a mechanism to secure a moratorium for restructuring
  3. 3 Whether provisional liquidators should continue in office

Ratio Decidendi

Because the contributories repeatedly failed to produce a concrete, signable restructuring agreement and the provisional liquidation jurisdiction was being misused as a de facto moratorium to the detriment of creditors, the court must make winding-up orders for the companies and allow the provisional liquidators to continue in office to protect and realise assets for creditors.

Court Disposition

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

Orders

  • Make winding-up orders in respect of each of the five companies before the court
  • The current provisional liquidators are to continue in office