WAH WO ALUMINIUM WORK COMPANY LTD v. PAUL Y. BUILDERS LTD

HCCW 12/2025

[2025] HKCFI 4112

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP PROCEEDINGS NO 12 OF 2025

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BETWEEN

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D E C I S I O N

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1.  I have before me a winding up petition seeking to liquidate Paul Y. Builders Limited. The Petitioner who holds approximately 3.5% of the Company’s debt seeks an immediate winding up order.

2.  The Company’s provisional liquidators consider it prudent for the Company to remain in provisional liquidation. In summary, the reasons for holding that view are, first that it gives the provisional liquidators time to find potential buyers for the Company’s building licences. The provisional liquidators anticipate that if an immediate winding up order is made, the Government will cancel the licences, and consequently less may be available for distribution to creditors.

3.  The second reason relates to negotiations with employers for the carrying out of rectification work on various projects. The rectification work can only carried out under the auspices of the existing building contracts if the Company retains its licenses.

4.  The provisional liquidators take the view that it is sensible for them to continue to negotiate with employers arrangements which allow for the completion of rectification work, probably funded by early release of retention monies directly to sub-contractors. If the Company is immediately wound up, they will lose the ability to do that, and the contracts will be terminated. The sub-contractors or new contractors will be employed directly by the employer and the provisional liquidators assume, in my view reasonably, that the amount that will end up being deducted from the retention monies would be greater than it might otherwise be.

5.  I am satisfied that in the circumstances, it is sensible to proceed in accordance with the provisional liquidators’ professional judgment in relation to this matter.

6.  I will adjourn the petition until 26 November 2025 before me at 10am. The provisional liquidators are to file a report on the progress of the provisional liquidation, and to give reasons in it for continuing with the provisional liquidation if they consider it prudent to do so, an affirmation exhibiting that report to be filed by 5pm on 7 November 2025.

7.  I will reserve the costs.