Winding-up Petition based on costs orders payable forthwith cannot be resisted with a cross-claim
In Re Success Lane Development Limited [2025] HKCFI 1121, the Companies Court considered whether a company could resist a winding-up petition presented based on outstanding interlocutory costs orders (payable forthwith or within 14 days upon summary assessment) by relying on a cross-claim for damages in ongoing legal proceedings. Background The dispute between the Petitioner and …
Arbitration in Hong Kong VS Winding-up Proceedings in Foreign Jurisdictions: Hyalroute v ICBC Asia
Introduction In a recent decision, the Hong Kong Court examined the interplay between arbitration agreements and cross-border insolvency proceedings. This decision highlights the divergence between Hong Kong’s pro-arbitration stance, whereby winding-up proceeding will be stayed in favour of arbitration unless there is abuse (see Re Guy Kwok Hung Lam (2023) 26 HKCFAR 129) and the …
Hong Kong Court of Appeal reversed winding-up order and reiterated that benefits under 2nd core requirement must be real rather than theoretical (CACV 233/2022, [2025] HKCA 555 on appeal from [2022] HKCFI 1329)
Factual Background Up Energy Development Group Ltd (the “Company”) was incorporated in Bermuda and listed on the Hong Kong Stock Exchange. It entered into provisional liquidation in October 2016 and was eventually wound up in Bermuda Court on 11 March 2022. In Hong Kong, the winding up order was made on 6 May 2022.