20 Oct 2000
Re Wing Hong Woo Co. Ltd.
- Citation
- Re Wing Hong Woo Co. Ltd.
- Court
- Court of First Instance
- Case number
- HCCW532/1995
The liquidator's summons was dismissed because (1) the running account principle meant transactions before 8 September 1995 were not preferential; (2) unutilized letters of credit did not constitute company indebtedness and could not be set aside; (3) the repayments of HK$7,000,000 and HK$2,772,982.91 were funded by the Bank to third parties and were not payments out of the company's assets and therefore did not diminish the company's estate; and (4) the liquidator failed to prove the dominant intention to prefer the Bank or its guarantor for the remaining payments.