Article courtesy of Amanda Singh (Eversheds Sutherland)
In re Ho Wan Kwok, No. 22-50073 (Bankr. D. Conn. Feb. 15, 2022)
Chapter 11 Trustee Can Spend $1,600,000 to Maintain a Mansion
Ho Wan Kwok, also known as Guo Wengui, filed a voluntary Chapter 11 petition on February 15, 2022, in the District of Connecticut. He is a Chinese “self-declared multi-billionaire” living in the United States. At the time of filing, Kwok listed liabilities totaling approximately $373.8 million, with assets valued at only $3,850. The U.S. Trustee’s Office filed a motion seeking the appointment of a Chapter 11 trustee, citing concerns over Kwok’s lack of cooperation and transparency. The motion highlighted issues such as the debtor’s failure to provide complete financial information and the potential for asset concealment through complex corporate structures involving family members and affiliated entities. In June 2022, the United States Bankruptcy Court District of Connecticut Bridgeport Division (the “Court”) granted the motion, appointing a Chapter 11 trustee to oversee the case. The decision was based on findings that the appointment was in the best interests of creditors and the estate, given the debtor’s demonstrated ability to obtain significant funds and the complexity of his financial affairs. On July 8, 2022, Luc A. Despins was appointed as the Trustee (in such capacity, the “Trustee”).
One of the key assets targeted by the Trustee is a 21-bedroom, 50,000- square-foot “castle-styled” mansion in Mahwah, New Jersey (the “Mansion”). The Mansion is “one of the largest mansions in the United States.” On April 7, 2025, the Trustee filed a motion requesting that the Court increase the previously approved expenses from $1,000,000 to $1,600,000. The Trustee argued that the increased expenses were substantial, but necessary to “preserve, secure and maintain” the value of the Mansion to the estate.
The Court granted the motion, agreeing that the increase was “in the best interests of the debtor’s estate and creditors”.
