2 subsidiaries of debt-ridden Hong Kong contractor Paul Y sued for HK$9.5 million

Two subsidiaries of a major Hong Kong construction firm have been sued by a subcontractor for compensation of more than HK$9.5 million (US$1.2 million) after the parent company proceeded with winding-up proceedings.

Paul Y Construction Co and Paul Y General Contractors – two subsidiaries of Paul Y Engineering Group – were allegedly indebted to Mankey Construction Company, the subcontractor that collaborated with them for more than a dozen projects from as early as 2020.

The two firms subcontracted some of their public construction works to Mankey, including a fire training facility in the airport’s three-runway system and a Kwun Tong residential development along Anderson Road, according to court documents made available on Wednesday.

While some works were completed between November 2020 and July 2024, projects such as the dedicated rehousing estates in Hung Shui Kiu Phase 2 and Kai Tak development were still in progress.

Paul Y General Contractors had allegedly failed to pay for those completed projects and accumulated debts of more than HK$3.7 million over the years. Paul Y Construction Co also allegedly owed HK$5.8 million for other projects it subcontracted to Mankey.

Recently, Paul Y Engineering Group applied to the court to appoint provisional liquidators for five of its subsidiaries to address debt issues and formulate a restructuring plan.