RE ROTEGEAR CORPORATION LTD.

HCCW 642/2000

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP PROCEEDINGS NO. 642 OF 2000

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J U D G M E N T

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1. The Petitioner obtained partial final judgment in the sum of $1,965,514.00 against the Company on 22 December 1999 in High Court Action No.13203 of 1999. An appeal to the Judge in chambers was lodged against the said decision but it was dismissed on 7 March 2000 after a hearing.

2. The said judgment sum was not satisfied by the Company and the Petitioner took out the Petition herein on 17 July 2000.

3. On 25 September 2000, the parties herein appeared before the Judge in charge of the Companies List. Mr Wong for the Company informed the Court that lawyers were only instructed by the Company shortly before the hearing. The Petition was adjourned on that day at the Company's request to 9 October 2000 (that is today), with directions given for the filing and service of affidavit evidence.

4. An affirmation was filed on the Company's behalf on 3 October 2000 by a Mr Hugh Wong setting out the grounds of opposition to this Petition. In short, Mr Wong disposed that the Company would be in a position to pay off the judgment sum within a reasonable period of time.

5. This is in effect also what Mr Wong has said during today's hearing. The latest instruction from the Company is that:-

(1) the Company will pay $750,000.00 to the Petitioner before 16 October 2000;

(2) the Company will:-

(a) within 10 days from today produce documents from HSBC evidencing banking facilities to enable the payment of the balance of the judgment sum; and/or

(b) produce documents from a third party evidencing facilities to enable such payment to be made.

6. Mr Hung for the Petitioner indicates that he will not oppose the matter to be adjourned further on the basis of what Mr Wong has informed the Court on the Company's behalf.

7. For the above reasons, I will adjourn this matter initially to Monday 16 October at 9.30 a.m. before the Companies Judge. If payment of $750,000.00 has in fact been effected by then, I will not anticipate the Company should encounter any difficulty in obtaining an adjournment of this matter to Monday 23 October 2000.