Re China Motor Vehicle Economic & Development Co. Ltd.

HCCW 933/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP PROCEEDINGS NO.933 OF 1999

-------------------

-----------------------

J U D G M E N T

-----------------------

1. This is a creditor's petition in respect of an unpaid debt which is founded upon a judgment in respect of arrears of rent in premises in the Landmark. The judgment was obtained in February 1999.

2. The debt is not disputed. The Company is the tenant and although the Company has apparently not been in operation since 1992. The rent has been paid by another company called Hohbond International Petrochemical Limited ("Hohbond") on its behalf. Previously there had been discussions of whether Hohbond should become the tenant, but those discussions did not come to fruition.

3. The Company is represented today by its director Ms Chu Li. Ms Chu informed the court that Hohbond is undergoing restructuring in China and that the directors of Hohbond believe that the restructuring should be completed in two months by which time there would be sufficient funds to discharge the debt. The proposal is rejected by the petitioner. The petitioner has not hitherto heard of any restructuring concerning Hohbond although there have been negotiations between the parties since February 1999.

4. There is no evidence before the court of the restructuring or that Hohbond will be in any position to discharge the Company's debt on its behalf. It is also not entirely clear why Hohbond would wish to do so since it is not formally the tenant. In these circumstances, it would not be appropriate for me to adjourn the petition for two months as requested. Equally it would not appear that any shorter adjournment is going to be of any assistance.

5. Accordingly, I will make the usual compulsory order. The petitioning creditor's costs are to be a liquidation expense.