IN RE PEREGRINE FIXED INCOME LTD. (IN LIQUIDATION)

IN RE PEREGRINE FIXED INCOME LTD. (IN LIQUIDATION)

The application to convert the compulsory winding up to a creditors' voluntary winding up is dismissed because the mandatory s.209A factors (public concern, ongoing need for investigation and the desirability of Official Receiver involvement) outweigh the creditors' preference and potential fee savings; conversion would improperly divest the court of necessary control.

Citation
IN RE PEREGRINE FIXED INCOME LTD. (IN LIQUIDATION)
Parties
Company (in Liquidation): Peregrine Fixed Income Limited; Applicant (liquidators): Liquidators of Peregrine Fixed Income Limited; Respondent (official Receiver): Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 September 1998
Case Number
HCCW32/1998
Procedural Posture
Companies (winding Up) No.32 of 1998 / Judgment on Application Under Section 209 a to Convert Compulsory Winding Up to Creditors' Voluntary Winding Up
Outcome
Application dismissed
Legal Topics
Winding Up, Conversion to Creditors' Voluntary Winding Up, Liquidator Powers, Statutory Discretion Under Section 209 a, Fees Under Companies (fees and Percentages) Order
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Conversion to Creditors' Voluntary Winding Up Liquidator Powers Statutory Discretion Under Section 209 a Fees Under Companies (fees and Percentages) Order

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Parties

Peregrine Fixed Income Limited

Company (in Liquidation)

Liquidators of Peregrine Fixed Income Limited

Applicant (liquidators)

Official Receiver

Respondent (official Receiver)

Procedural Posture

Companies (winding Up) No.32 of 1998 / Judgment on Application Under Section 209 a to Convert Compulsory Winding Up to Creditors' Voluntary Winding Up

Legal Issues

  1. 1 Whether the court should exercise its discretion under section 209A to convert a compulsory winding up into a creditors' voluntary winding up
  2. 2 Whether creditors' wishes and fee savings outweigh public interest and the need for ongoing investigations
  3. 3 Whether the court can or should impose conditions to preserve investigative oversight if conversion is ordered

Ratio Decidendi

The application to convert the compulsory winding up to a creditors' voluntary winding up is dismissed because the mandatory s.209A factors (public concern, ongoing need for investigation and the desirability of Official Receiver involvement) outweigh the creditors' preference and potential fee savings; conversion would improperly divest the court of necessary control.

Court Disposition

Application dismissed

Orders

  • The application to convert the compulsory winding up into a creditors' voluntary winding up is dismissed
  • Costs, charges and expenses of and occasioned by the application to be costs, charges and expenses in the liquidation of PFIL (order nisi)