Danish Firm Wins Legal Battle in Hong Kong

A marathon legal battle ended in Hong Kong last month (March) when Wheelock Marden & Co. was ordered to pay 310.4 million Danish kroner (US$40 million) to a Danish shipping finance firm for failing to provide full information before seeking loans from the company in the 1980s. The conglomerate will also have to pay costs for the six-month trial that are expected to run into tens of millions of dollars.

In an 800-page judgment, Mr. Justice Barnett found the directors of Wheelock Marden, which was taken over by the late shipping tycoon Sir Yue-Kong Pao’s Wharf group in 1985, not guilty of defrauding creditors.

Aktieselskabet Dansk Skibsfinan-siering (Danish Shipping Finance) had said the former directors had known that Wheelock Marden’s shipping arm Wheelock Maritime International (WMI) would not receive financial support from its parent.

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