German Kitchen liquidators seek $370m from trustees

PUBLISHED : Wednesday, 10 February, 1999, 12:00am
UPDATED : Wednesday, 10 February, 1999, 12:00am


Liquidators of German Kitchen (China) have launched legal action to recoup $370.5 million from trustees, including former directors Eric Tang Yiu-hong and Eugene Tang Yiu-chuen.

Injunctions are also being sought to stop the Tang brothers from moving their assets, up to the value of $137.4 million, out of Hong Kong or transferring them within the SAR in any way.

German Kitchen is asking the court for a further injunction to force the pair to disclose details of their assets and of any dealings with funds originating from the company.

In a High Court writ, it is claimed that the brothers hold the sum of $137.4 million as constructive trustees on behalf of German Kitchen.

The Tang brothers were arrested by the Commercial Crime Bureau last August over a suspected $23 million fraud. No charges have been laid.

German Kitchen (China) is the principal subsidiary of GKC Holdings.

A further $87.9 million is being sought by the company from Square Enterprises, also a trustee, according to the writ. The money is allegedly being held by Square Enterprises on behalf of German Kitchen.

Legal action is also being taken to restrain the trustee from moving its assets in any way and, similarly, an injunction is being sought to force Square Enterprises to disclose details of dealings of funds originating from German Kitchen.

A second writ has been lodged at the High Court by German Kitchen to recover $137.4 million from Danny Leung Yiu-shing, who allegedly holds the sum as a trustee.

Similar injunctions are being requested to stop the movement of assets from and within Hong Kong, and to disclose particulars of dealings with company funds.

A further $7.8 million was allegedly received by Hilley, which the company claims is a constructive trustee. Injunctions are also being sought to deter asset dispersion.

German Kitchen is also seeking interest on the sums due and costs in the action.