RE DAVENHAM ENGINEERING PROJECTS LTD

HCCW 286/2003

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 286 OF 2003

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J U D G M E N T

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1. This is a petition to wind up Davenham Engineering Projects Limited ("the Company") presented by Dah Sing Bank, Limited. The petitioning debt is a judgment debt of HK$4,458,786.95 obtained in High Court Action No. 73 of 2003.

2. A demand for the debt was served on 12 February 2003 and the petition herein was filed on 7 March 2003. There are two supporting creditors to this petition.

3. Provisional liquidators were appointed on 15 March 2003 on the basis that the Company was seeking to novate various contracts to other contractors and to explore the possibility of disposing of the listing status of the Company as a Government approved specialist contractor in 6 categories.

4. The petition was adjourned twice on 28 April 2003 and on 26 May 2003 for the provisional liquidators to do what is necessary to bring about the disposition of the Company's assets to the best advantage of its creditors.

5. According to the latest affirmation filed by the provisional liquidators, the majority of the accounts receivable are not collectable and that the amount shown for creditors in the financial statements has been understated. They have not been successful to dispose of the listing status of the Company as a specialist contractor notwithstanding initial expressions of interest from various quarters.

6. In the circumstances, the provisional liquidators and the Company have not opposed the petition to wind up the Company. I therefore make a winding-up order and I order that the petitioner's costs are to be paid out of the Company's assets. I also order one set of costs for the supporting creditors to be paid out of the Company's assets.