RE TSANG WAI CHE

HCB 12990/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 12990 OF 2001

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J U D G M E N T

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1. The petition herein brought by Ceroilfood Finance Ltd is based on a judgment debt obtained in HCA 788/2001.

2. The debtor, Mr Tsang Wai Che, was one of the three defendants in that action. The amount of the debt with interest calculated up to 6 December 2001 was in the sum of HK$33,165,787.44. It was based on a joint and several guarantee dated 24 September 1997, signed by the debtor and two others to guarantee the liability of York Channel Ltd regarding the facilities granted by the petitioner to this company.

3. A statutory demand was served on the debtor personally on 16 November 2001 demanding payment of HK$42,521,672.66. The petition was filed on 28 December 2001 and served on the Debtor personally on 24 January 2002.

4. The petitioner holds security in the form of a charging order absolute on a property owned by the debtor in Wylie Court. However, as that property is subject to a first legal charge, a second mortgage and another legal charge in favour of other creditors, it is not likely that this security would be of any value. The petition is not made in respect of the secured part of the debt.

5. According to an affidavit of continuing indebtedness filed on behalf of the petitioner, as at 4 April 2002, the debtor is indebted to the petitioner in the sum of HK$30,104,781.35.

6. I understand from the debtor's solicitor that the debtor would no longer contest the petition. In the circumstances, I make a bankruptcy order with costs to the petitioner.