Re Hong Kong Mercantile Exchange Ltd

Court:High Court (Hong Kong)
Judgement Number:HCCW10/2014
Judgment Date:24 Aug 2018
Neutral Citation:[2018] HKCFI 1986
HCCW10/2014 RE HONG KONG MERCANTILE EXCHANGE LTD

HCCW 10/2014

[2018] HKCFI 1986

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING‑UP PROCEEDINGS NO 10 OF 2014

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IN THE MATTER of the Companies Ordinance
and
IN THE MATTER of Hong Kong Mercantile Exchange Limited (香港商品交易所有限公司)

________________

Before: Hon Harris J in Chambers
Date of Hearing: 24 August 2018
Date of Decision: 24 August 2018

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D E C I S I O N

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1. I have before me a summons dated 14 June 2017 seeking a permanent stay of the winding-up proceedings involving Hong Kong Mercantile Exchange Limited and a simultaneous discharge of the liquidators. The background to the application is straightforward. The Company’s liabilities to unsecured creditors have been compromised pursuant to a scheme of arrangement.

2. The circumstances in which the court will grant a stay of extant winding-up proceedings are summarised in para 2 of my judgment in Re The Grande Holdings Limited, unreported, HCCW 177/2011, 9 May 2016. They are—

(1) the court has regard to the interests of members, creditors and the liquidator;

(2) the court also considers whether the stay is conducive to commercial morality and the interests of the public at large;

(3) in the circumstances of the case, whether if a stay is granted all creditors and potential outstanding liabilities of the company are provided for.

3. It is normally the case where unsecured debts have been compromised pursuant to a scheme of arrangement that these conditions are readily satisfied.

4. An issue did arise in the present matter as a result of a delay in completion of the scheme but that issue has now been resolved and as a consequence, I am satisfied that the normal criteria have been met and it is an appropriate case to stay the winding-up proceedings and make the consequential order discharging the liquidators.

5. The costs of the application will be paid out of the assets of the Company.

(Jonathan Harris)
Judge of the Court of First Instance
High Court

Mr Michael Lok, instructed by Wilkinson & Grist, for the liquidators

The attendance of the Official...

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