XN000022-1990-01-05 — Page 11

FRIDAY, JANUARY 5, 1990

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DOWNWARD TREND IN NEW INSOLVENCIES CONTINUES

THE REGISTRAR GENERAL, MR NOEL GLEESON, SAID TODAY

(FRIDAY)

THAT 1989 WAS THE FOURTH YEAR IN SUCCESSION WHICH SHOWED A DOWNWARD TREND IN THE NUMBER OF NEW INSOLVENCIES REACHING THE COURTS.

NEW

THERE WERE 158 NEW COMPULSORY COMPANY LIQUIDATIONS AND 177 PERSONAL BANKRUPTCIES COMPARED WITH CORRESPONDING FIGURES OF 163 AND 216 IN 1988, A DECREASE OF 11.81 PER CENT.

THIS DOWNWARD TREND IN INSOLVENCIES REFLECTED THE CONTINUED GOOD PERFORMANCE OF HONG KONG'S ECONOMY GENERALLY AND FOLLOWED A 27.12 PER CENT DECREASE IN THE TOTAL NUMBER OF NEW INSOLVENCIES IN 1988 COMPARED WITH 1987, MR GLEESON SAID,

TOTAL DIVIDENDS DECLARED BY THE OFFICIAL RECEIVER DURING 1989 AMOUNTED TO $139.9 MILLION IN 308 INSOLVENCIES, AS AGAINST $87.6 MILLION IN 428 INSOLVENCIES IN 1988.

THE TOTAL NUMBER OF INSOLVENCIES BEING HANDLED BY THE OFFICIAL RECEIVER'S OFFICE AT THE END OF THE YEAR WAS 2,425, BEING 1,232 COMPULSORY COMPANY LIQUIDATIONS AND 1,193 PERSONAL BANKRUPTCIES, AS AGAINST A TOTAL OF 2,988 AT THE END OF 1988,

FUNDS ADMINISTERED BY THE OFFICIAL RECEIVER AT THE END OF THE YEAR TOTALLED $1,297 MILLION AS AGAINST $1,259 MILLION AT THE END OF 1988, AN INCREASE OF 3.02 PER CENT. THE OFFICIAL RECEIVER ALSO ADMINISTERED A SUM OF US$7.9 MILLION TOGETHER WITH A JOINT LIQUIDATOR.

MR GLEESON SAID DISCUSSIONS WERE CONTINUING WITH THE HONG KONG SOCIETY OF ACCOUNTANTS ON PROPOSALS FOR PASSING TO THE PRIVATE SECTOR MORE OF THE WORK OF THE OFFICIAL RECEIVER'S OFFICE, PARTICULARLY COMPANY LIQUIDATIONS.

A FIRM OF MANAGEMENT CONSULTANTS WOULD ALSO BE REPORTING ΤΟ

HIM ON THIS AND OTHER OPTIONS SOON, HE SAID.

THE INTERESTS OF CREDITORS AND ALSO SAVINGS TO GOVERNMENT WOULD BE PRIME FACTORS IN WHATEVER DECISIONS WERE TAKEN.

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