HANG SENG BANK LTD v. LIN YAO MING

HCB 1571/2007

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

IN BANKRUPTCY

NO. 1571 OF 2007

____________________

____________________

____________________

J U D G M E N T

____________________

1. This is a bankruptcy petition presented by the Hang Seng Bank Limited against Lin Yao-ming.  It does not appear that there is any dispute that the Debtor is in fact indebted to the Petitioner in the amount that is claimed in the petition.  The matter has been adjourned on a number of occasions to enable the parties to consider possible settlement proposals.

2. The matter now comes before me in the following state:  The Debtor has put in further evidence very shortly before this hearing to suggest that he has arranged a meeting with the creditor or an officer of the creditor to take place sometime in the next week or so, and that he is seeking to make arrangements to have properties owned by the company whose debts he guaranteed, which gave rise to the claim on which the petition is based, sold.

3. There is at present no evidence of any imminent sale of those properties and, what is more, the properties are owned not by the Debtor himself but by the company of which he was a guarantor, which is, I am informed by Mr Cheung who appears for the creditor, itself in liquidation, a Winding-Up Order having been made against it on the basis of a petition presented by the Petitioner.

4. It seems quite clear from the evidence that the Debtor is not at present able to pay the debt on which the petition is based and there being no dispute as to that debt, it seems to me that I should simply make the usual Bankruptcy Order with costs against the Creditor.  I would just add that although the Debtor has asserted that there is to be a meeting with an officer of the Petitioner in the course of this week, Mr Cheung’s position is clear in that he is instructed by the Petitioner to ask for the making of a bankruptcy order today.

5. In these circumstances, it seems to me that the appropriate course would simply be to make the bankruptcy order sought with costs.