29 May 2001
RE WING HONG WOO CO LTD
- Citation
- RE WING HONG WOO CO LTD
- Court
- Court of Appeal
- Case number
- CACV1004/2000
The Court held the payments were not fraudulent preferences because (1) several payments were not payments by the company but by third parties or by a related company pursuant to arrangements to discharge guarantor liabilities, (2) the payments resulted from legitimate enforcement of guarantees and security (including release and re‑mortgage of third‑party property) and did not give the bank a preference over other creditors, and (3) proceeds related to trust receipts were de facto security of the bank such that the company had no free assets to prefer; accordingly the liquidator's claim fail…