RE FIRST CHINA TRADING LTD

HCCW 226/2006

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 226 OF 2006

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Before: Hon Kwan J in Court

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J U D G M E N T

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1.  This petition to wind up First China Trading Limited (“the Company”) is presented by The Bank of China (Hong Kong) Limited.  By an order dated 8 July 2005 in HCA No. 7769 of 2000 and HCMP No. 3909 of 2000 (“the consolidated proceedings”), the Company was adjudged to pay the petitioner $14,210,402.63 with interest and costs (“the 1^st judgment debt”).  By a further order in the consolidated proceedings on 17 August 2005, the Company was ordered to pay costs to the petitioner fixed at $90,000.00 (“the 2^nd judgment debt”).  On 13 December 2005, the petitioner served a demand on the Company to pay the 1^st and 2^nd judgment debts.

2.  The petitioner held security for payment of the indebtedness of the Company under a mortgage of a property in Kowloon.  That property was sold in March 2006 at $13 million.  After applying the net proceeds of sale towards the 1^st judgment debt, as at 6 March 2006, the Company was indebted to the petitioner of $3.3 odd million under the 1^st judgment debt.  The 2^nd judgment debt has remained unpaid.

3.  I am given to understand that the Company no longer opposes the petition.

4.  There is produced to the court a letter dated 5 July 2006 from a director written on behalf of the Company to that effect.

5.  Further, an outstanding appeal against the judgment debts has been withdrawn.  In the circumstances, I make an order to wind up the Company, the petitioner’s costs are to be paid out of the Company’s assets.

Miss Janine Cheung, instructed by Messrs Gallant Y. T. Ho & Co., for the Petitioner

The Company: First China Trading Limited (Absent)

Miss Vivian Yeung for the Official Receiver