RE CHAN YUK CHARM

HCB 7939/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 7939 OF 2001

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J U D G M E N T

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1. The petitioner in this matter is the Bank of China (Hong Kong) Limited. Before the merger of banks, it was the Kwangtung Provincial Bank. The petition is based on a judgment debt in High Court Action No. 1546 of 2001 on 15 May 2001 in the sum of HK$15,461,762.22 with interest. A statutory demand was served on the debtor personally on 12 July 2001. The petition herein was filed on 20 September 2001 and an order for substituted service was obtained on 24 December 2001. That order has been complied with.

2. When the debtor first appeared before the Master on 8 January 2002, he informed the Master that he was in the process of discussing a debt restructuring with his creditors. He repeated that to me when the petition first came before me on 14 January 2002. In view of his representation to the court that 90% of his creditors had verbally indicated that they were prepared to consider a debt restructuring, and that he had insufficient time to put forward a proposal to his creditors, I adjourned the petition to 28 January 2002 to give the debtor an opportunity to apply for an interim order.

3. On 28 January 2002, I again adjourned the petition to 4 February 2002 for the debtor to file a further affirmation giving the gist of his proposal to his creditors and to exhibit written confirmation from those of his creditors who were willing to consider his proposal.

4. Having considered the further affirmation of the debtor filed on 1 February 2002, on 4 February 2002 I again adjourned the petition for four weeks to 4 March 2002 and gave a very clear indication to the debtor that he should apply for an interim order before the adjourned hearing as this would be the last adjournment.

5. Up to today, no application for an interim order has been filed by the debtor. On 2 March 2002, he has filed a notice to act in person and he has not appeared today.

6. In these circumstances, as there is no dispute to the debt and as the petition is supported by one of the creditors, SIIC Finance Co. Ltd., which is owed a judgment debt of HK$30,267,534.25, I make a bankruptcy order with costs to the petitioner.