Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Redemption formula
  • 22 Apr 2010

    PEARLDELTA GROUP LTD v. HUGE WINNERS INTERNATIONAL LTD AND OTHERS

    Citation
    PEARLDELTA GROUP LTD v. HUGE WINNERS INTERNATIONAL LTD AND OTHERS
    Court
    Court of First Instance
    Case number
    HCA818/2008

    The court held Pearldelta was entitled to redeem under the SIA because Huge Winners breached express SIA obligations (late/absent audited and management accounts and failure to fund the sinking fund) constituting Events of Default; the Redemption Notice complied with the contract; the individual guarantors' defences (misrepresentation, non est factum, undue influence) failed; the SIA fell within the MLO exemption for substantial companies and, in any event, the major part of the redemption return is capital not interest; the conversion-price clause properly supports a minimum conversion price…