RE TANG SIK HO

HCB 3118/2002

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 3118 OF 2002

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J U D G M E N T

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1. By a Petition dated 19 February 2002, the Judgment Creditor sought a bankruptcy order against the Judgment Debtor. This Petition was based on a statutory demand served on the Judgment Debtor on 8 January 2002 in respect of $4,120,000.00 being balance of a judgment debt and $1,812,840.09 being accumulated interest.

2. The Judgment Debtor did not dispute the debt nor the service of the statutory demand. In the Notice of Intention to Oppose Petition filed on 1 June 2002, he contended that he was able to pay his debts.

3. The Petition came before the court on 10 June 2002. Solicitor for the Debtor asked for time to arrange a scheme of repayment. The matter was adjourned to today.

4. At the hearing today, the Debtor asked for more time to either obtain a loan to repay the Judgment Creditor or provide a guarantee for such purpose. In support of that application, the Debtor put in an affirmation stating that he needed more time to finalise loan arrangement with his relatives. He also put in an affirmation from a friend who indicated that he was willing to act as a guarantor. This application was opposed by the Judgment Creditor.

5. I agree with the submission of Mr Chum on behalf of the Judgment Creditor that the affirmation of the friend does not show sufficient financial ability on his part to guarantee this debt.

6. With regard to the need for time for loan arrangement, it has to be borne in mind that the statutory demand was served in January 2002. The latest affirmation did not disclose any details regarding the purported loan arrangement and no explanation was given as to why such loan could not be forthcoming earlier.

7. In the circumstances, I am not satisfied that there is any reasonable prospect that the debt could be paid. I am satisfied as to the proof of the debt and service of the Petition. I therefore make a bankruptcy order against the Judgment Debtor.