Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Priority among creditors

Legal area

Court

29 Oct 1999

IPI INTERNATIONAL PAPER INDUSTRY LTD. v. D.S. OFFSET PRINTING CO. LTD.

Citation

IPI INTERNATIONAL PAPER INDUSTRY LTD. v. D.S. OFFSET PRINTING CO. LTD.
Court

Court of First Instance
Case number

HCA12852/1999

The stay was refused because the applicant was a contributory not a creditor, the plaintiffs' claims were found to be bona fide and they were the only and major creditors so there was no risk of unfair priority; therefore the court declined to exercise its discretion to stay the actions.
28 Dec 1993

In re INTER TRANS FAR EAST LTD.

Citation

In re INTER TRANS FAR EAST LTD.
Court

Court of First Instance
Case number

HCCW195/1986

Under s.265(5B) a court may grant a creditor who indemnifies the liquidator a preferential share above pari passu where the indemnity and efforts materially contribute to recovery; the discretion must be exercised strictly, matching reward to risk/expense and, where practicable, offering other creditors the opportunity to indemnify; applying these principles, a 15% indemnity was reasonable on the facts.