18th September 2020 – (Hong Kong) Duncan Chui, the third-generation family member of Wan Chai Fook Lam Moon Restaurant was sued for debts several times in recent months. He was again sued in the High Court yesterday (17th) by a finance company. The plaintiff alleged that a company in which Duncan held shares and served as a director had a second mortgage where the restaurant was located last year, with a loan of HK$12 million, and Duncan served as the loan guarantor.
As the company failed to repay the loan in accordance with the contract, the plaintiff filed a lawsuit against the company and Duncan. The total principal plus interest exceeded HK$14 million. In this case, the plaintiff, Kingsway SW Finance Limited sued the first defendant, COQUEEN COMPANY LIMITED and the second defendant, Duncan Chui for the outstanding debts. The plaintiff alleged in the filing that the first defendant used its property, i.e. No. 3, G/F, Lee Man Building, Johnston Road, Wan Chai in March last year as a second mortgage to the plaintiff to borrow money. The loan was originally scheduled to be repaid in 3 months while the second defendant signed as a personal guarantor. However, the first defendant did not repay the payment after the due date. After discussion, the plaintiff and the first defendant reached an agreement in September last year to amortize the payment by instalments. However, the first defendant only repaid the first instalment of HK$1 million and did not repay subsequently.
Duncan was also sued in March this year by a finance company in the High Court for debt amounting to HK$20 million and more than HK$12.9 million in accumulated interest.
The plaintiff was Prosperous International Finance Limited and the defendant, Duncan was the son of second-generation owner of the Fook Lam Moon group. According to the statement of claim, the HK$20m loan which was given to the defendant by another man, Lo in March 2014 was originally scheduled to be repaid in September in 2014 with a monthly interest of 2.2%. The interest would be increased to 5% if he failed to repay.
However, in May 2014, Lo transferred the loan to the plaintiff. After that, the two parties reached an agreement again, and the plaintiff agreed to extend the repayment period to March 2015, after which the plaintiff agreed to extend the repayment period to February 2017. However, the defendant failed to repay the principal and interest within the pre-set deadlines. The defendant was still unable to repay the principal sum of HK$20 million as of 29th February this year with interest despite repeated reminders sent by the Plaintiff’s lawyer.