Hong Kong Court issues injunction restraining presentation of winding up petition against Bermuda company, thanks to an Anonymous Man in a Facemask

In a judgment dated 8 February 2017, with reasons published on 29 March 2017, Chow J of Hong Kong’s Court of First Instance has issued an injunction restraining presentation of a winding up petition against a Bermuda exempt company whose shares are listed on Hong Kong’s Stock Exchange.

The case is China Health Group Limited v Li Hong Holdings Limited [2017] HKCFI 544.

The legal principles applied in the case are not new – with the Court concluding that the alleged debt based on a Statutory Demand was the subject of a bona fide dispute, and therefore inappropriate for the winding up jurisdiction of the Court.

The alleged facts in the case (as yet untested at trial) are more interesting, as illustrated by paragraph 20 of the judgment: “In his 2nd affirmation dated on 17 January 2017 and filed on 20 January 2017, Mr Chung alleges that while he was in Beijing on 2 and 3 January 2017, he was sought out by an anonymous man. He met the anonymous man, who was wearing a facemask, at his hotel on 3 January 2018, and was given an USB drive which was wrapped in a plastic film. The anonymous man told Mr Chung that the USB drive contained some important information, gave him a password to open the USB drive and then left. Mr Chung opened the USB drive on the same day and found that it contained various emails (“the New Emails”) which Mr Man submits are objective proof that the evidence of Mr Chen and Mr Ho relating to the Debt Purchase Agreement is fabricated and support the plaintiff’s case of the Backdoor Arrangement“.

 

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