19 Mar 2025
PEKING UNIVERSITY FOUNDER GROUP COMPANY LIMITED (北大方正集團有限公司) v. KUNZHI LIMITED (坤智有限公司)(IN LIQUIDATION IN THE BRITISH VIRGIN ISLANDS)
- Citation
- [2025] HKCFA 6
- Court
- Court of Final Appeal
- Case number
- FACV9/2024
The Court held that the Issuers/Guarantor suffered no actionable diminution of wealth from non-payment because lawful performance of the liquidity obligation by lending would have substituted the debt to bondholders with an equal debt to the parent (no net loss); the true commercial loss was suffered by bondholders and remediable by the Trustee; plaintiffs had not pleaded or proved any separate consequential diminution from insolvency at the relevant date; accordingly breaches of clause 4.1(ii) of the Keepwell Deeds resulted only in nominal damages