RE HANG FUNG JEWELLERY CO LTD
The Company was hopelessly insolvent, subject to statutory demand and there was no viable restructuring or opposition; therefore the court ordered the Company to be wound up and directed that the petitioners costs be paid out of the Companys assets.
Source-derived case information.
- Citation
- RE HANG FUNG JEWELLERY CO LTD
- Parties
- Petitioner: HSBC; Company/respondent: Hang Fung Jewellery Company Limited; Parent Company: 3D-Gold Jewellery Holdings Limited; Provisional Liquidators: Joint & Several Provisional Liquidators; Creditor: Standard Chartered Bank (Hong Kong) Limited; Official Receiver: Official Receiver
- Court
- Court of First Instance
- Jurisdiction
- Hong Kong
- Judgment Date
- 7 September 2009
- Case Number
- HCCW503/2008
- Procedural Posture
- Winding Up Petition / Judgment/order Made
- Outcome
- Order that the Company be wound up
- Legal Topics
- Winding Up, Provisional Liquidation, Scheme of Arrangement, Statutory Demand, Insolvency
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
HSBC
Petitioner
Hang Fung Jewellery Company Limited
Company/respondent
3D-Gold Jewellery Holdings Limited
Parent Company
Joint & Several Provisional Liquidators
Provisional Liquidators
Standard Chartered Bank (Hong Kong) Limited
Creditor
Official Receiver
Official Receiver
Procedural Posture
Winding Up Petition / Judgment/order Made
Legal Issues
- 1 Whether the Company should be wound up for insolvency
- 2 Whether any viable restructuring exists for the Company
- 3 Whether costs should be paid out of the Companys assets
Ratio Decidendi
The Company was hopelessly insolvent, subject to statutory demand and there was no viable restructuring or opposition; therefore the court ordered the Company to be wound up and directed that the petitioners costs be paid out of the Companys assets.
Court Disposition
Order that the Company be wound up
Orders
- The Company is to be wound up.
- The costs of the petitioner are to be paid out of the Companys assets.
Full Case Text
Judgment text and source record
1 paragraphs
bjbj Ordinance, Cap. 32 ____________ Before: Hon Kwan J in Court Date of Hearing: 7 September 2009 Date of Judgment: 7 September 2009 _______________ J U D G M E N T _______________ This petition for winding up was presented by HSBC against Hang Fung Jewellery Company Limited ( the Company ) on 17 October 2008. Provisional liquidators were appointed for the Company and its ultimate parent company 3D-Gold Jewellery Holdings Limited ( 3D-Gold ) on the same day. The shares of 3D-Gold were listed on the Main Board of the Stock Exchange Hong Kong Limited and trading was suspended since 30 September 2008. The Company was the key asset-holding subsidiary in the 3D group. As at 16 October 2008, 3D-Gold and the Company were indebted to the petitioner of HK$4.2 million and US$62.4 million for banking facilities and guarantees to the petitioner. A statutory demand was served on 3D-Gold and the Company on 17 October 2008. It is not in dispute that both companies are hopelessly insolvent. A restructuring agreement was entered into on 23 December 2008 for 3D-Gold and the relevant subsidiaries and on 7 July 2009, the court granted orders sanctioning the schemes of arrangement. The Company is not required as part of the resumption proposal for 3D-Gold, and the provisional liquidators have not been able to devise any restructuring for the Company. The petitioner and the provisional liquidators seek a winding-up order today. There is no opposition to this. I make an order that the Company be wound up and that the costs of the petitioner are to be paid out of the Company s assets. (S. Kwan) Judge of the Court of First Instance High Court Mr Alan Kwong, instructed by Messrs JSM, for the Petitioner Mr Eugene Kwok, instructed by Messrs Baker & McKenzie, for the Company and the Joint & Several Provisional Liquidators Messrs O Melveny & Myers, for the Creditor, Standard Chartered Bank (Hong Kong) Limited, absent Miss Vivian Yeung, for the Official Receiver PAGE - A B C D E F G H 1udk 1udk i$&`G 5<>| r "d HCCW.dot Lilian YS Tai Microsoft Word 9.0 <sf/ Title Microsoft Word Document MSWordDoc Word.Document.8