RE UP ENERGY DEVELOPMENT GROUP LTD

RE UP ENERGY DEVELOPMENT GROUP LTD

The court held that the petitioner satisfied the second core requirement (a reasonable possibility of benefit from a Hong Kong winding up) given assets and recoverable matters in Hong Kong; the mere fact the company was wound up in Bermuda does not preclude a Hong Kong winding up; and the Hong Kong court does not...

Source-derived case information.

Citation
[2022] HKCFI 1329
Parties
Petitioner (creditor): HEC Securities Limited; Company (respondent): Up Energy Development Group Limited; Joint Provisional Liquidators (respondents): Joint Provisional Liquidators of Up Energy Development Group Limited; Opposing Creditor: Integrated Capital (Asia) Limited; Supporting Creditor: Credit Suisse AG, Singapore Branch; Opposing Creditor: China Minsheng Banking Corp., Ltd (Hong Kong Branch); Opposing Creditor: Hao Tian Development Group Limited; Interested Party / Supervisor: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 May 2022
Case Number
HCCW91/2016
Procedural Posture
Companies (winding Up) Proceedings Under S.327 CWUO / Final Hearing and Judgment (petition to Wind Up Foreign Company; Ancillary Liquidation)
Outcome
Winding up order made against Up Energy Development Group Limited (ancillary winding up in Hong Kong)
Legal Topics
Winding Up, Recognition and Assistance, Modified Universalism, Provisional Liquidation, Jurisdictional Discretion
Source Language
en
Company Law Insolvency Cross Border Insolvency Winding Up Recognition and Assistance Modified Universalism Provisional Liquidation Jurisdictional Discretion

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

HEC Securities Limited

Petitioner (creditor)

Up Energy Development Group Limited

Company (respondent)

Joint Provisional Liquidators of Up Energy Development Group Limited

Joint Provisional Liquidators (respondents)

Integrated Capital (Asia) Limited

Opposing Creditor

Credit Suisse AG, Singapore Branch

Supporting Creditor

China Minsheng Banking Corp., Ltd (Hong Kong Branch)

Opposing Creditor

Hao Tian Development Group Limited

Opposing Creditor

Official Receiver

Interested Party / Supervisor

Procedural Posture

Companies (winding Up) Proceedings Under S.327 CWUO / Final Hearing and Judgment (petition to Wind Up Foreign Company; Ancillary Liquidation)

Legal Issues

  1. 1 Whether the court should exercise its discretion under s.327 CWUO to wind up a foreign company already wound up in Bermuda
  2. 2 Whether the petitioner satisfied the three core requirements (connection, reasonable prospect of benefit, proper person to present petition) particularly the second requirement
  3. 3 Whether the Hong Kong court has a common law power to confer the provisions and powers of the CWUO on foreign liquidators absent a Hong Kong winding up order

Ratio Decidendi

The court held that the petitioner satisfied the second core requirement (a reasonable possibility of benefit from a Hong Kong winding up) given assets and recoverable matters in Hong Kong; the mere fact the company was wound up in Bermuda does not preclude a Hong Kong winding up; and the Hong Kong court does not have a common law power to make provisions of the CWUO available to foreign (Bermuda) liquidators absent a Hong Kong winding up order; accordingly the court granted a winding up order in Hong Kong to enable the statutory regime to operate for creditors' benefit.

Court Disposition

Winding up order made against Up Energy Development Group Limited (ancillary winding up in Hong Kong)

Orders

  • Winding up order made against Up Energy Development Group Limited
  • Costs order nisi: the costs of and occasioned by the hearings on 14 February 2022 and 1 April 2022 to be paid by Integrated Capital (Asia) Limited and the Joint Provisional Liquidators to the Petitioner and the Official Receiver, with certificate for two counsel, to be taxed if not agreed