Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Related‑party debt waiver
  • 11 Jan 2002

    RE UNITED HONG KONG LTD.

    Citation
    RE UNITED HONG KONG LTD.
    Court
    Court of First Instance
    Case number
    HCCW13/2001

    Under s.209 of the Companies Ordinance the court exercised its discretion to stay all further winding‑up proceedings because related‑party creditors had waived or agreed time to pay substantial debts thereby converting an apparent deficiency into net assets, external creditors were not prejudiced (petitioner accepted a personal guarantee and others allowed time), and the circumstances of a family company holding let property meant liquidation would be unduly disruptive; substitution of the applicant under O.15 r.6 was permitted.