UDL HOLDINGS<0620> - Announcement
The Stock Exchange of Hong Kong Limited takes no responsibility for
the contents of this announcement, makes no representation as to its
accuracy or completeness and expressly disclaims any liability
whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.
UDL Holdings Limited
(incorporated in Bermuda with limited liability)
Announcement
Summary
This announcement refers to certain press articles published in
various newspapers on 11 May, 1999 (the "Articles") in relation to
the Company.
The board of directors (the "Board") refers to the court hearing on
28 April, 1999 in relation to a winding-up petition presented by The
Hongkong & Shanghai Banking Corporation Limited ("HSBC") against the
Company in which the court declined to grant an order to wind up the
Company pending the outcome of the proceedings in respect of the
Company's application for the implementation of a scheme of
arrangement under section 166 of the Companies Ordinance (Cap. 32).
This was announced on 29 April, 1999. Subsequent to the handing down
of reasons by the Honourable Madam Justice Le Pichon (the "Judge")
on 10 May, 1999, there were many articles appeared in newspapers.
The Board henceforth would like to inform the shareholders and the
public the reasons given by the Judge for declining the winding-
up petition handed down on 10 May, 1999 which are as follows:
1. the Company had demonstrated it had support from 75% of the
creditors to the scheme of arrangement proposed by the Company; and
2. notwithstanding the petition of HSBC to wind up, the wish of the
majority of the creditors to allow the Company to restructure the
debts by means of a scheme of arrangement should be given recognition.
The Company is still negotiating the scheme of arrangement with
creditors, therefore, the Board is of the view that the aforesaid
winding-up petition has no significant impact on the financial
position of the Company.
Save as disclosed herein, the Board of the Company is not aware of
any other matter discloseable under the general obligation imposed
by paragraph 2 of the Listing Agreement, which is or may be of a price
sensitive nature.
Meanwhile shareholders of the Company should exercise extreme
caution when dealing in the shares of the Company. Further
announcement will be made when there are any material development
regarding the above mentioned matter.
By Order of the Board
UDL Holdings Limited
Leung Yat Tung
Chairman
Hong Kong, 11 May, 1999
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