Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Guarantees and securities

Legal area

Court

1 Mar 2001

HEALTHY WHARF LTD. v. LEUNG YAT TUNG

Citation

HEALTHY WHARF LTD. v. LEUNG YAT TUNG
Court

Court of First Instance
Case number

HCB2019/2000

The court refused to make an interim order and made a bankruptcy order because the debtor failed to provide full and frank disclosure (notably materially overstating unsecured liabilities by omitting securities and late/ad hoc disclosures), the intended nominees did not discharge independent duties to verify and present a complete picture, and on that basis the proposal was not serious or viable to justify a moratorium.
1 Mar 2001

RE LEUNG YAT TUNG

Citation

RE LEUNG YAT TUNG
Court

Court of First Instance
Case number

HCBI1/2001

The court refused to grant the interim order because the debtor and the intended nominees failed to provide full and frank disclosure, including a material misrepresentation of liabilities by omitting security values and inadequate verification by nominees; the proposal was therefore not shown to be serious and viable and the exercise of discretion to impose a moratorium was refused; the bankruptcy order was made as the petition was uncontested.