20 Apr 2022
RE CHINA ASSOCIATION LTD (In Liquidation)
- Citation
- [2022] HKCFI 1060
- Court
- Court of First Instance
- Case number
- HCCW239/2019
The court sanctioned the proposed distribution because, as a matter of statute and equity, sureties who discharge the principal debtor's loan are entitled to proprietary subrogation to the creditor's securities and to seek contribution from co-sureties to equalise burdens; applying those principles to the facts required SHX's entitlement to be extinguished and the Trust Account to be divided CAL 46% and CHPL 54% with sale costs apportioned accordingly, and the court accepted the liquidators' commercial judgment under s199(2) Cap 32.