RE B F CONSTRUCTION CO LTD

RE B F CONSTRUCTION CO LTD

The court refused to make an immediate winding‑up order and adjourned the petition to a date not earlier than three months because a clear majority of known third‑party creditors by value and number favoured an adjournment to pursue arbitration/negotiation with the Cheung Kong group which could materially affect solvency and recoveries; the court may properly have regard to creditors' wishes under s.287(1), and ongoing investigations and arbitration justified a limited adjournment rather than immediate winding up. The court also exercised its discretion to hear non‑contributories (Dr Chan and Madam Law) as having sufficient interest.

Citation
RE B F CONSTRUCTION CO LTD
Parties
Petitioner (contributory): Maintain Profits Limited; Petitioner (contributory): Myriad Gold Corporation; Company: B F Construction Company Limited; Provisional Liquidators: Provisional Liquidators; Interested Party: Law Wai Duen (Madam Law), Nina; Interested Party: Dr Chan Shiu Chick; Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 2004
Case Number
HCCW691/2004
Procedural Posture
Petition to Wind Up (companies Winding Up) / Adjournment Hearing Following Appointment of Provisional Liquidators
Outcome
Petition to wind up not determined today; petition adjourned to a date not earlier than three months from the hearing with two hours reserved; costs reserved
Legal Topics
Winding Up, Just and Equitable Winding Up, Provisional Liquidation, Creditors' Meeting and Voting, Adjournment of Petition, Misfeasance, Claims Against Third Parties
Source Language
EN
Company Law Insolvency Commercial Arbitration Corporate Governance Winding Up Just and Equitable Winding Up Provisional Liquidation Creditors' Meeting and Voting +3 more

Case Brief

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Parties

Maintain Profits Limited

Petitioner (contributory)

Myriad Gold Corporation

Petitioner (contributory)

B F Construction Company Limited

Company

Provisional Liquidators

Provisional Liquidators

Law Wai Duen (Madam Law), Nina

Interested Party

Dr Chan Shiu Chick

Interested Party

Official Receiver

Interested Party

Procedural Posture

Petition to Wind Up (companies Winding Up) / Adjournment Hearing Following Appointment of Provisional Liquidators

Legal Issues

  1. 1 Whether to make an immediate winding‑up order or adjourn the petition
  2. 2 Whether the court may have regard to the wishes of creditors where the petition is presented by contributories
  3. 3 Whether non‑contributories (Dr Chan and Madam Law) may be heard by the court

Ratio Decidendi

The court refused to make an immediate winding‑up order and adjourned the petition to a date not earlier than three months because a clear majority of known third‑party creditors by value and number favoured an adjournment to pursue arbitration/negotiation with the Cheung Kong group which could materially affect solvency and recoveries; the court may properly have regard to creditors' wishes under s.287(1), and ongoing investigations and arbitration justified a limited adjournment rather than immediate winding up. The court also exercised its discretion to hear non‑contributories (Dr Chan and Madam Law) as having sufficient interest.

Court Disposition

Petition to wind up not determined today; petition adjourned to a date not earlier than three months from the hearing with two hours reserved; costs reserved

Orders

  • Petition adjourned to a date not earlier than three months from 9 December 2004 with two hours reserved
  • Leave given to the petitioners to fix a hearing date forthwith