RE WONG CHUN KIT

HCB 5613/2014

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 5613 OF 2014

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DECISION
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1.  This is a bankruptcy petition presented by Prudential Hong Kong Limited against Mr Wong Chun-kit on the ground that Mr Wong is unable to pay his debt in that he has failed to comply with a statutory demand served on him on 14 May 2014.

2.  The debtor was an insurance agent of the petitioner, having entered into a number of agreements with the petitioner in around December 2010.  The agreements provided for an advance of a sign-on fee and an advance of what is called monthly financing to the debtor. 

3.  In around June to September 2013, the petitioner considered the debtor’s performance unsatisfactory and was minded to terminate his agency.  On 5 September 2013, the petitioner agreed to extend the debtor’s contract to the end of October 2013.  In return, the debtor agreed that if he failed to meet the specified sales target, the petitioner would be entitled to recover HK$562,419 from the debtor, based on a percentage of the sign-on fee and monthly financing recoverable under the scale in the service agreement. Eventually, the debtor did not meet the sales targets and the petitioner terminated his contract with effect from March 2014. 

4.  In May 2014, the statutory demand was issued for the amount of HK$557,296.85 being the amount the petitioner was entitled to recover under the agreement in September 2013, after giving credit for a sum of commission.

5.  Mr Wong initially opposed the petition which was adjourned to today.  He has informed the court, however, this morning that he no longer opposes the petition. 

6.  I am satisfied that the grounds for the petition have been made out and there will therefore be the usual bankruptcy order with costs.