4 May 2005
RE SURPLUS TRADER LTD
- Citation
- RE SURPLUS TRADER LTD
- Court
- Court of First Instance
- Case number
- HCCW826/2004
The court refused the validation orders because the provisional liquidators' evidence established that Surplus Trader had no available cash and Sino Trade Asia had only HK$81,000; given the companies' effective insolvency, lack of ongoing business and the small funds available, permitting use of assets to fund defences would not be in the interests of the creditors as a whole and therefore the court would not exercise its discretion to validate such payments under section 182.