Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Proposal to compound/deal
  • 24 Jul 2002

    RE CHENG WAI KEI

    Citation
    RE CHENG WAI KEI
    Court
    Court of First Instance
    Case number
    HCB2109/2002

    The court found the petitioner had established an outstanding debt in excess of US$5 million, the debtor produced no evidence of ability to pay, the proposals to compound were speculative and unsupported, and the terms of the guarantee allowed enforcement without first realising securities (and the statement of account clause did not prevent other proof). Therefore there was no substantial dispute and a bankruptcy order was properly made against the debtor.