18 Mar 2008
RE PEREGRINE INVESTMENTS HOLDINGS LTD.
- Citation
- RE PEREGRINE INVESTMENTS HOLDINGS LTD.
- Court
- Court of First Instance
- Case number
- HCCW32/1998
The court held that guaranteed creditors who have contractual claims, including non-provable deferred interest, are entitled to continue to receive dividends from both PDL and PIHL until their full contractual claims are satisfied; however, no subrogation arises for PIHL because interim/post-proof dividends paid by PIHL do not appropriate or reduce the debts owed by PDL, and the rule against double proof prevents PIHL from proving in PDL's liquidation in competition with the guaranteed creditors; any surplus held by the guaranteed creditors is held on trust for PIHL.