Hong Kong Case Law: Decisions & Judgments

Topic

Stay of winding-up

Legal area

Court

2 Apr 2020

RE GW ELECTRONICS CO LTD

Citation

[2020] HKCA 180
Court

Court of Appeal
Case number

CACV84/2017

The Court held the petition valid: the debt was a liquidated contractual sum ascertainable by the contract's Article 17 mechanism and supporting statements, the statutory demand complied with s.178, the Company was insolvent on the cash-flow test when TEAL terminated, and there was no bona fide dispute on substantial grounds because the alleged oral settlement lacked contemporaneous documentary support and was commercially implausible; accordingly the strike-out application and appeal failed.
23 Jan 2020

RE HONG KONG PAK TAT TRADING CO (In compulsory liquidation) (the “Company”)

Citation

[2020] HKCFI 287
Court

Court of First Instance
Case number

HCCW236/2011

A conditional permanent stay of the winding-up was granted under s209 subject to the Executors' undertakings including addressing the principal indebtedness and providing security for liquidators' remuneration: specifically the Executors must provide undertakings (including treatment/waiver of the HK$53,000,000 claim) and procure net payment of 50% of the taxed liquidators' costs and expenses (with an undertaking to pay the remainder in accordance with the court's determination) before the stay takes effect; the application to declare the SPA void was dismissed as misconceived in winding-up p…
8 Sept 2017

DAVID MOY v. THE OFFICIAL RECEIVER

Citation

DAVID MOY v. THE OFFICIAL RECEIVER
Court

Court of First Instance
Case number

HCCW20/2014

The court concluded a stay of the winding-up is appropriate provided the applicant obtains the specified undertakings from relevant creditors and the Official Receiver's fees of $177,004 are paid out of realised assets; accordingly the court ordered payment of the OR's fees and directed submission of a draft order containing undertakings, upon satisfaction of which the court will stay the winding-up and discharge the Official Receiver.
17 Oct 2013

RE BLOXWORTH ENTERPRISES (HK) LTD

Citation

RE BLOXWORTH ENTERPRISES (HK) LTD
Court

Court of First Instance
Case number

HCMP2219/2013

The court exercised its discretion to grant a permanent stay because the scheme creditors and sole shareholder consented, debts were assigned or will be waived, there were genuine commercial reasons to effect a transfer to realise value for scheme creditors (including an offer of HK$2,000,000), and the liquidators affirmed no irregularities requiring investigation, satisfying the section 209(1) test that the winding-up proceedings ought to be stayed.
6 Dec 2012

RE FULLBRIGHT CO LTD

Citation

RE FULLBRIGHT CO LTD
Court

Court of First Instance
Case number

HCCW208/2008

The court accepted that the settlement agreement, together with enforceable undertakings by the shareholders to manage and run the company, sufficiently discharged the applicant's burden under s209 and that the residual concerns (failure to produce some books and disposal to a connected company) were not sufficiently serious to defeat the stay; accordingly a permanent stay under s209 and a conditional release of the liquidators under s205 were ordered, with conditions including payment in full to the Commissioner and the Government and payment of Official Receiver's costs of HK$12,000 out of…
25 Jan 2011

RE KAKON INVESTMENT CO LTD

Citation

RE KAKON INVESTMENT CO LTD
Court

Court of First Instance
Case number

HCMP36/2011

Given the absence of third-party creditors, sufficiency of assets to meet liabilities and liquidation expenses, agreement of shareholders and directors and no objection from the Official Receiver, the court concluded this is a proper case to grant a stay of the voluntary winding-up and to order payment of the liquidator's costs from company assets.
5 Feb 2008

CRYSTAL JADE CULINARY CONCEPTS HOLDING PTE LTD (formerly known as TUNGSWAY FOOD & BEVERAGE HOLDINGS (PTE) LTD) v. LEUNG YEE WAI MONA AND OTHERS

Citation

CRYSTAL JADE CULINARY CONCEPTS HOLDING PTE LTD (formerly known as TUNGSWAY FOOD & BEVERAGE HOLDINGS (PTE) LTD) v. LEUNG YEE WAI MONA AND OTHERS
Court

Court of First Instance
Case number

HCCW506/2007

The summons under s.255 was misconceived because the issues raised were substantially the same as the pending petition and thus should not be determined in advance; until a stay is granted or shareholders ratify the resolution under s.228(1)(b) the liquidators must continue the liquidation; because the summons was clearly misconceived the liquidators must pay the Petitioner's costs of the summons.
21 Nov 2007

CHAN HOW CHUNG, VICTOR AND ANOTHER v. TKR FINANCE LTD AND ANOTHER

Citation

CHAN HOW CHUNG, VICTOR AND ANOTHER v. TKR FINANCE LTD AND ANOTHER
Court

Court of First Instance
Case number

HCCW657/2004

A permanent stay was granted because the court was satisfied there were good reasons: creditor interests were resolved (creditors paid or assigned and the holding company will be paid under an approved debt consolidation), shareholders were applicants, the liquidator's remaining concerns about three lots of third‑party shares were capable of being managed by the company's undertaking to hold and deal with those shares, and the Official Receiver did not propose disqualification or other public‑interest proceedings that would require continuation of the liquidation; accordingly the stay was app…
5 Oct 2005

RE ASEAN INTERESTS LTD

Citation

RE ASEAN INTERESTS LTD
Court

Court of First Instance
Case number

HCCW1233/2000

The court granted a permanent stay because the applicants discharged the burden to show the restructuring was bona fide and in creditors' interests, liquidators supported the proposal, creditors would receive better returns than in liquidation, public policy concerns raised by the liquidators were remedied by repayments, subordination and conversion undertakings, settlement of contingent liabilities, and by a Carecraft disqualification order against Mr Vaswani; accordingly the balance favoured granting the stay subject to the terms and undertakings secured.
11 Mar 2005

FU KONG INCORPORATED v. HUA YUN DA GROUP LTD

Citation

FU KONG INCORPORATED v. HUA YUN DA GROUP LTD
Court

Court of First Instance
Case number

HCCW980/2004

Because the company failed to satisfy the statutory demand within 21 days and withdrew its opposition to the petition and its application for a stay, the court dismissed the stay application and made a winding-up order.