Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Rate of interest (prime v hibor)

Legal area

Court

15 Jan 2008

MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER

Citation

MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA10821/1998

Court held prime is the appropriate base rate in principle but, on the evidence as to credit and market circumstances, awarded interest at prime minus 0.5% as the fair compensatory margin; interest runs from date of notice of termination (30 June 1998).
15 Jan 2008

MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER

Citation

MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA10714/1998

The court rejected adoption of HIBOR as the standard base rate due to volatility, variability of commercial loan terms and the need for consistency; having reviewed credit histories and comparative evidence the court concluded prime remains the appropriate base but reduced the margin to prime minus 0.5% as the fair compensation for the large deposit held over many years; statutory interest runs from the date of notice of termination, 30 June 1998, pursuant to s.48 HCO.