Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Insolvency test

  • 16 Jan 2019

    有關債務人黃德智的事宜

    Citation
    [2019] HKCFI 47
    Court
    Court of First Instance
    Case number
    HCB333/2018

    Despite significant credibility concerns and inconsistent sworn statements and insufficient documentary proof of the alleged transfer, the available bank statements and loan statements did not establish that the debtor was plainly able to pay his debts when the petition was presented; therefore the petition was not found to be an abuse of process and a bankruptcy order was made, subject to trustee investigation and potential annulment if assets are recovered or it is shown the debtor could pay at the time of the order.

  • 13 Jan 2016

    RE DESHELI COSMETICS (HK) LTD

    Citation
    RE DESHELI COSMETICS (HK) LTD
    Court
    Court of First Instance
    Case number
    HCCW210/2015

    Petitioner established a prima facie unpaid liquidated debt; respondent failed to produce sufficiently precise, believable evidence to show a bona fide defence on substantial grounds and did not rebut the cogent inference of insolvency arising from lack of assets or operations in Hong Kong; therefore on the balance of probabilities the company was unable to pay its debts and a winding-up order was appropriate.

  • 7 May 2009

    RE PERFECTA DYEING, PRINTING & WEAVING WORKS LTD

    Citation
    RE PERFECTA DYEING, PRINTING & WEAVING WORKS LTD
    Court
    Court of First Instance
    Case number
    HCCW80/2009

    On the evidence the Company was insolvent, the proposed instalment repayment plan was speculative and lacked credible assurance of performance given the Company's and related Panyu Perfecta's indebtedness and frozen assets; multiple substantial creditors supported the petition; therefore the court was satisfied a winding-up order should be made and an adjournment would serve no useful purpose.

  • 9 May 2008

    RE JACKIN TOTAL FULFILMENT SERVICES LTD

    Citation
    RE JACKIN TOTAL FULFILMENT SERVICES LTD
    Court
    Court of First Instance
    Case number
    HCCW628/2006

    The petition by HBFP was dismissed because the alleged debt was bona fide disputed on substantial grounds such that the Company had shown a genuine dispute; although JSM as a supporting creditor had locus to present a petition based on contingent untaxed costs, the Company\u2019s insolvency was not demonstrated and the parent company\u2019s written undertaking to pay sums when properly assessed obviated the need for a winding-up order; accordingly no winding-up order was made and costs directions were given against the Petitioner.

  • 31 Dec 2001

    COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. HONG KONG BRANCH v. SOUTH EAST ASIA OVERSEAS FINANCE LTD

    Citation
    COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. HONG KONG BRANCH v. SOUTH EAST ASIA OVERSEAS FINANCE LTD
    Court
    Court of First Instance
    Case number
    HCCW1329/2001

    The petitioner established a good prima facie case for winding-up based on insolvency and inability to pay debts; there was credible evidence of non-cooperation by management and risk of asset dissipation; provisional liquidators with an experienced independent management team are likely to stabilise operations and better protect creditors and the public interest; on balance of convenience the Court ordered appointment of provisional liquidators subject to agreement with the Official Receiver on terms.

  • 15 Jan 2001

    RE GOOD FORTUNE AGENCY LTD.

    Citation
    RE GOOD FORTUNE AGENCY LTD.
    Court
    Court of First Instance
    Case number
    HCCW944/2000

    The company failed to rebut the presumption of insolvency: the director affirmation was unconvincing and possibly defective, the balance sheet showed substantial accrued losses and inadequate liquid assets, and the proposed loan was contingent on unproven third-party security; accordingly the court exercised its discretion to make the usual winding-up order.

  • 23 Oct 1989

    RE CASANOSTRA LTD

    Citation
    RE CASANOSTRA LTD
    Court
    Court of First Instance
    Case number
    HCCW153/1988

    The court made a compulsory winding-up order because the statutory demand was not complied with, the company failed to show a bona fide dispute on substantial grounds, evidence (including default judgment against Italtrade and unpaid sums under a consent order) established the company was unable to pay its debts under the proper insolvency test, and the managing director validly executed the guarantee; the application for a stay of advertisement was refused as inappropriate.