RE HO HO YIN

HCB 11935/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 11935 OF 2001

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J U D G M E N T

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1. This is a petition for self-bankruptcy filed by the debtor on 4 December 2001. The petition is opposed by one creditor, Elect Chem Machinery Trade Ltd, which has obtained a judgment in the District Court against the debtor for the sum of HK$66,000.00. According to the Statement of Affairs filed by the debtor, he has one secured creditor to whom is owed HK$275,883.32 and the debt is secured by a property with an estimated value of HK$260,000.00. The debtor has admitted his indebtedness to 11 unsecured creditors in the total sum of HK$2,108,328.42. He has one personal bank account and two business accounts and the credit balance in these accounts is negligible.

2. The opposing creditor has alleged that the debtor should have assets to pay his debts and that the debtor has not disclosed these assets in his Statement of Affairs and the affirmation he filed in court. According to the opposing creditor, the debtor was examined in the District Court by the opposing creditor and had admitted that a debt of HK$895,000.00 was owed to the debtor's firm, Ching Fung Electro-plating Factory, by a company known as Swanski Silver Co. which is owned by the debtor's brother, Ho Ho Keung. It is also alleged that the debtor has assets in China being factory premises and shop premises.

3. The debtor has filed an affirmation stating that in 2001, he had sold the entire electro-plating business of his factory in China for HK$1.9 million and the proceeds had been used to settle his outstanding debts. As for another property in Panyu, he had sold this property in 1999 for RMB160,000.00 and the proceeds were also used in his business. Other than these properties which have been sold, he owns no assets in China.

4. Miss Claire Mak who appeared for the opposing creditor has asked me to adjourn the petition for the opposing creditor to obtain the transcript from the District Court relating to the debtor's examination. I decline to do so. Even if the debtor had said what he is alleged to have said in the examination in that he would have debts receivable in the sum of HK$895,000.00, this would not be sufficient to discharge the total indebtedness to all his unsecured creditors of over HK$2 million.

5. I am satisfied on the evidence before me that the debtor does not have sufficient assets to pay his debts. I therefore make a bankruptcy order. As I have indicated to the opposing creditor, if the debtor has debts which have not been collected, this would be taken over by the Official Receiver when the bankruptcy order is made. Further, if there should be any transfer of the debtor's assets before the presentation of his petition in contravention of the Bankruptcy Ordinance, this would be investigated by the Official Receiver. Hence, the position of all the creditors would be sufficiently protected at law.

6. I make no order regarding the costs of this petition.