Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Continuation of trading

  • 9 Apr 2019

    BANK OF INDIA v. BERGNER (HK) LTD (In Liquidation)

    Citation
    [2019] HKCFI 1171
    Court
    Court of First Instance
    Case number
    HCCW45/2019

    The court granted the validation order because there was sufficient credible material that ordinary trading was likely to be profitable and would increase the company’s assets for the benefit of creditors: management accounts showed continuing trading profit, major banking creditors (together representing a large proportion of liabilities) supported continuation, and the risks of ceasing trading (claims from trading partners and worse recovery) outweighed objections from the petitioning bank; accordingly the draft validation order was appropriate and granted.

  • 23 Oct 2001

    LEE PO WANG SAMSON v. EVER RISE ENGINEERING LTD.

    Citation
    LEE PO WANG SAMSON v. EVER RISE ENGINEERING LTD.
    Court
    Court of First Instance
    Case number
    HCCW714/2001

    A limited validation order was appropriate and granted because majority shareholder and associated creditors undertook not to call in approximately HK$8.3 million of loans until after the petition determination and because completing existing contracts was likely to generate short-term net receipts benefiting creditors; the order was strictly confined to ordinary course payments (excluding validation of shareholder loans), limited in time to the conclusion of the petition hearing, and included safeguards as to bank verification and excluded validation of specified loans.