RE IXNET HONG KONG LTD

HCCW 1367/2002

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 1367 OF 2002

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J U D G M E N T

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1. This is a petition for winding-up presented by Reach Networks Hong Kong Limited, formerly known as PCCW-HKT International Limited. The debt in the petition is in the sum of HK$56,136,578.27, being cancellation charges with interest thereon under twenty-four contracts entered into between the petitioner and the company, Ixnet Hong Kong Limited ("the Company"), for the provision of international private leased circuit services by the petitioner to the Company. A demand for the debt was served on the Company on 17 September 2002 and the petition herein was presented on 11 December 2002.

2. The petition was adjourned in February 2003 as the Company has filed evidence of a restructuring exercise in Bermuda involving an associated company. It was envisaged in the restructuring proposal that the Company would be one of the operations to be acquired by the investor.

3. On 17 March 2003, I adjourned the petition for seven days for the Company to file further evidence to give an account of the up-to-date position of the restructuring agreement. No evidence was filed by the Company and the Company has written to the court on 22 March 2003 that it no longer opposes the petition.

4. In the circumstances, I make a winding-up order against the Company and I order that the petitioner's costs are to be paid out of the Company's assets.