RE LUEN FAI PIECEGOODS & CLOTHS CO LTD

RE LUEN FAI PIECEGOODS & CLOTHS CO LTD

Winding-up order granted because the petitioner demonstrated an undisputed debt of HK$6,415,103.39 and the company failed to present a viable scheme of arrangement or any material financial evidence to rebut insolvency; the court exercised its discretion to make the winding-up order and only partially awarded costs to the petitioner.

Citation
RE LUEN FAI PIECEGOODS & CLOTHS CO LTD
Parties
Petitioner: Petitioner; Respondent (company): Luen Fai Piecegoods & Cloths Company Limited; Opposing Creditor: Itochu Textile Materials (Asia) Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 February 2010
Case Number
HCCW541/2009
Procedural Posture
Winding Up Petition Under Companies Ordinance (cap.32) / Final Hearing; Winding Up Order Made
Outcome
Winding-up order made against the company.
Legal Topics
Winding Up, Scheme of Arrangement, Insolvency, Creditors' Rights, Costs
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Scheme of Arrangement Insolvency Creditors' Rights Costs

Case Brief

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 3 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Petitioner

Petitioner

Luen Fai Piecegoods & Cloths Company Limited

Respondent (company)

Itochu Textile Materials (Asia) Limited

Opposing Creditor

Official Receiver

Official Receiver

Procedural Posture

Winding Up Petition Under Companies Ordinance (cap.32) / Final Hearing; Winding Up Order Made

Legal Issues

  1. 1 Whether the company is insolvent and liable to be wound up
  2. 2 Whether a viable scheme of arrangement was proposed and supported by requisite majority in number and 75% in value of unsecured creditors
  3. 3 Whether the company provided sufficient evidence of solvency including audited accounts and cashflow

Ratio Decidendi

Winding-up order granted because the petitioner demonstrated an undisputed debt of HK$6,415,103.39 and the company failed to present a viable scheme of arrangement or any material financial evidence to rebut insolvency; the court exercised its discretion to make the winding-up order and only partially awarded costs to the petitioner.

Court Disposition

Winding-up order made against the company.

Orders

  • Winding-up order made against Luen Fai Piecegoods & Cloths Company Limited
  • Petitioner awarded 50% of costs from 9 December 2009