Hong Kong Case Law: Decisions & Judgments

Topic

Compromise of debts

Legal area

Court

2 Feb 2007

RE MOULIN GLOBAL EYECARE HOLDINGS LTD AND OTHERS

Citation

RE MOULIN GLOBAL EYECARE HOLDINGS LTD AND OTHERS
Court

Court of First Instance
Case number

HCMP2460/2006

The court held that sanction should be given under ss.199(1)(e) and/or (f) to admit inter-company balances as shown in the records (with the exception of Oaktree-related balances) as the basis for proofs of debt because (a) the as-is method is the most appropriate and practicable in the circumstances given the scale of alleged false accounting and destroyed records, (b) the proposal does not alter creditors' rights to pari passu participation in distribution, (c) there was substantial consultation and overwhelming creditor support, and (d) requiring separate s.166 schemes would cause dispropo…
20 Aug 2003

RE CHINA NONFERROUS METALS GROUP (HONG KONG) LTD

Citation

RE CHINA NONFERROUS METALS GROUP (HONG KONG) LTD
Court

Court of First Instance
Case number

HCCW130/2002

The court refused to set aside or refer the COI resolutions because the liquidators had investigated and reasonably concluded the transactions were in creditors' interests, there was no evidence of mala fides or perverse conduct, the objections to COI members were unsupported, and substantial majority creditor support made a general creditors' meeting unnecessary.
27 Sept 2001

Re Rhine Jewellery Ltd. (In Liquidation)

Citation

Re Rhine Jewellery Ltd. (In Liquidation)
Court

Court of First Instance
Case number

HCCW511/1998

The court granted sanction because the company was an unsecured creditor at the bottom of the priority hierarchy, IWI was shown to be in poor financial health and subject to a perfected security interest in favour of BACC making full recovery unlikely, so accepting US$70,000 as a compromise was a commercially reasonable exercise of the court's sanctioning power.

Hong Kong Case Law

RE MOULIN GLOBAL EYECARE HOLDINGS LTD AND OTHERS

RE CHINA NONFERROUS METALS GROUP (HONG KONG) LTD

Re Rhine Jewellery Ltd. (In Liquidation)