Hong Kong Case Law: Decisions & Judgments

Topic

Restructuring

Legal area

Court

14 Jun 2024

RE DEXIN CHINA HOLDINGS COMPANY LTD

Citation

[2024] HKCFI 1610
Court

Court of First Instance
Case number

HCCW164/2024

The petition succeeded because the Company failed to comply with the statutory demand and was therefore deemed insolvent; the Company provided no adequate explanation for late evidence and no substantive evidence of a realistic restructuring or concrete creditor support to displace the petitioner’s entitlement; the court was satisfied the second core requirement under s.327(3) was met by the Company’s Hong Kong connections (listing, funds raised and local bank accounts) and the leverage/useful purpose of a winding up, so a winding up order was warranted.
11 Jun 2024

RE DOINGCOM INTERNATIONAL LTD

Citation

[2024] HKCFI 1574
Court

Court of First Instance
Case number

HCCW28/2024

After amendment the petition satisfied the three core requirements in s.327(1); both companies failed to comply with statutory demands and are deemed insolvent under s.178(1)(a); the asserted restructuring proposals had not secured necessary funding nor progressed sufficiently (in particular the HK scheme) during the adjournment; the petitioner refused to support the restructuring and there was no realistic prospect of implementation; accordingly the court exercised its discretion to make winding-up orders against both companies.
20 Oct 2023

KML ENGINEERING LTD v. UNIVISION ENGINEERING LTD

Citation

[2023] HKCFI 2691
Court

Court of First Instance
Case number

HCCW323/2023

Debt was not disputed; the company failed to prove a concrete viable restructuring plan with evidence of investor commitment or creditor support and could not show any useful purpose in adjourning the petition (Silverbear's loan was conditional on withdrawal of petitions and investment proposals lacked substance); consequently the court was compelled to grant the winding up order.
18 May 2023

RE DANGDAI INTERNATIONAL INVESTMENTS LTD (Company No. F26577)

Citation

[2023] HKCFI 1347
Court

Court of First Instance
Case number

HCCW65/2023

The court granted an immediate winding‑up order: the Petitioner as trustee had standing; the Company admitted insolvency and default; the Company failed to demonstrate any concrete, credible restructuring proposal or sufficient independent creditor support to justify adjourning the petition, and the adjournment sought would not serve any useful purpose.
6 Oct 2022

RE CARNIVAL GROUP INTERNATIONAL HOLDINGS LTD

Citation

[2022] HKCFI 3097
Court

Court of First Instance
Case number

HCCW48/2020

The judge found that the 2nd to 5th respondents caused the Company to continue to oppose the Petition on an unjustified jurisdictional ground despite there being no realistic prospect of implementing a global restructuring (notably no approach to major immigration bondholders and clear barriers to onshore realisations), and that they failed to take the responsible course of full disclosure and seeking time; accordingly the 2nd to 5th respondents were ordered personally to pay the costs of and occasioned by the Company’s opposition at the 23 August 2022 hearing, while the 6th and 7th responden…
17 Dec 2021

RE ASIA TODAY LTD (In Provision Liquidation)

Citation

[2021] HKCFI 3841
Court

Court of First Instance
Case number

HCMP1368/2021

Applying the established criteria for sanctioning schemes, the court found the Scheme properly convened, adequately informed creditors, obtained necessary majorities, had a sufficient Hong Kong connection and commercial purpose, and therefore sanctioned the Scheme; the court also exercised its discretion to amend the provisional liquidation costs order to permit payment by the investor under the restructuring agreement.
9 Nov 2021

RE HJ INNOXCELL LTD

Citation

[2021] HKCFI 3538
Court

Court of First Instance
Case number

HCCW374/2020

The stay was lifted because the condition on which it rested (determination of HCA 1707/2018) had been satisfied by the dismissal of that action for failure to pay ordered security for costs; no winding-up order was made as it was not sought in the summons and the matter was listed for a short chambers hearing; the Company's request for further adjournment and expansive leave to file evidence was refused but limited leave to file further evidence by a fixed deadline was granted.
22 Jul 2021

RE TRINITY (MANAGEMENT SERVICES) LTD

Citation

[2021] HKCFI 2207
Court

Court of First Instance
Case number

HCCW420/2020

The petition was not adjourned and a winding-up order was made because the Company failed to produce credible, precise evidence demonstrating a reasonable prospect of paying the undisputed debt in full within a reasonable time; the proposed sale and Bermuda provisional liquidation arrangements were insufficient to satisfy the threshold for adjournment and the related-party support was discounted in the assessment.
20 May 2021

BANK OF TAIWAN, HONG KONG BRANCH v. ZHAOHENG HYDROPOWER (HONG KONG) LTD

Citation

[2021] HKCFI 1434
Court

Court of First Instance
Case number

HCCW37/2021

The Court granted the winding up order because the debt claimed was due and undisputed, the statutory demand was valid and unmet, the Company was unable to pay its debts under s177/178 CWUO, and the Company failed to produce any concrete, supported restructuring proposal or binding arrangements that would justify adjourning the petition.
18 May 2021

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF VICTORY CITY INTERNATIONAL HOLDINGS LTD

Citation

[2021] HKCFI 1370
Court

Court of First Instance
Case number

HCMP611/2021

The Court granted recognition and assistance to the joint and several provisional liquidators appointed in Bermuda because the Bermudian appointment was valid and the applicants were appropriate to be recognised in Hong Kong; notwithstanding concerns about the misuse of soft-touch provisional liquidation, those concerns did not outweigh the basis for recognition but justify heightened judicial scrutiny in future similar cases.