RE WORLD CAPITAL PACIFIC LTD

HCCW 283/2007

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 283 OF 2007

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J U D G M E N T

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1.  This is a petition to wind up World Capital Pacific Limited (“the Company”) presented by Cowealth Medical Science and Biotechnology Inc.  The petition is founded on a judgment debt in HCA No. 1122 of 2006 on 16 April 2007.

2.  A Master of the High Court granted summary judgment in favour of the petitioner in the sum of US$2,281,880 with interest.  A demand for the judgment debt was served on the Company on 14 May 2007.  The petition was presented on 25 June 2007.  The Company appealed against the summary judgment of the Master and the petition was adjourned several times pending the outcome of that appeal.

3.  On 29 November 2007, Yam J dismissed the Company’s appeal and on the application of the Company for stay of execution of the judgment, he granted a stay conditional on the Company paying the sums of US$200,880 and US$2,081,000 into court within 21 days.  No payment into court was made.  The Company has not filed any evidence in opposition of the petition.

4.  I understand the petitioning debt is no longer in dispute and cannot be in dispute in view of the dismissal of the Company’s appeal.  I am informed by counsel on both sides that on 3 December 2007 an agreement was reached between certain parties in Beijing (not the petitioner and the Company) by which a third party is to pay the judgment debt owed to the petitioner.  According to the petitioner’s counsel, this settlement agreement does not provide any time frame for performance and the petitioner does not consider it sufficient or reliable that somebody of substance would perform the Company’s liabilities and obligations under the judgment in the High Court Action.  Mr Lau appearing for the Company today sought an adjournment of two weeks to enable the Company to put forward a proposal to the petitioner.

5.  I am not minded to grant any adjournment.  The petition has been adjourned for quite a number of occasions since the first hearing before a Master on 29 August 2007.  As I indicated to the Company if at the end of the day, the Company is able to discharge in full the judgment debt with the assistance of some third party, an application could then be made to stay the winding-up order permanently.

6.  I make an order to wind up the Company.  The petitioner’s costs are to be paid out of the Company’s assets.