RE FOUNCHES INTERNATIONAL LTD.

HCCW 156/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP NO. 156 OF 199

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J U D G M E N T

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1. This is a petition for the winding up of the Company. In May 2000, a judgment had been obtained by the Petitioner against the Company in the sum of $6 million. Although a property which has been mortgaged to the Petitioner has been sold and the proceeds of sale have been set off against the judgment debt there is still a sizeable amount of the judgment outstanding which apparently is in the region of more than $4 million.

2. A statutory demand has been served and has not been satisfied, and the petition was accordingly presented in February 2001. There has been no affidavit from the Company. It has not appeared today by counsel and there are no supporting or opposing creditors. In view of the judgment, the Petitioner is entitled ex debito justitiae to a winding up order. No grounds have been put before me as to why I should exercise my discretion not to wind up the Company and therefore I would make the usual winding up order.