This is a situation where the debtor company had gone bankrupt. By reducing the debt to 50% shareholders of the broken company recovered part of the old business.
The seller is liable only for the reality of the debt, but not of the debtor's solvency.
Seller LTD, a People’s Republic of China company, with main office at Shenzhen, 25 High Street, represented by its Director, Mr. Luen Diao.
HONG KONG TRADING LTD, a Hong Kong company, with main office at 34 South Avenue, represented by its manager, Mr. Peter Smith.
- XINO XANO (Seller) owns a credit of 5,000,000CNY against SUKUPA LTD (Debtor), a People’s Republic of China company, with premises and offices at 45, North Street, Shanghai; originated by deliveries of goods. The detail of credited invoices is attached as annex 1.
- HONG KONG TRADING (Buyer) wants to buy the Credit, with all its associated rights and actions.
The Seller sells to the Buyer the Credit, identified in statement 1, with all its associated right and actions. From now the Buyer shall be considered as the sole owner of the Credit.
The price of the sell is 2,000,000 CNY.
The Buyer will pay the price by transfer to Seller's bank account number PR12-4854-5986-4578-4874, according to following schedule:
- CNY 500,000, no later than December 12th, 2213.
- CNY 500,000, no later than December 12th, 2214.
- CNY 500,000, no later than December 12th, 2215.
- CNY 500,000, no later than December 12th, 2216.
If the Buyer fails to pay any of the price instalments, the Seller can decide whether to: a) file a claim for the total amount due at the moment, plus a yearly interest of 3%; or, b) recover the Credit. In b) event the entire amount paid until then by the Buyer will be considered as penalty.
Before taking any of the mentioned actions the Seller will send a write notice, both to the Buyer and its Manager, granting a further delay of 30 working days to pay all the debt.
The Seller is responsible of the reality of the Credit but not of Debtor's solvency.
The Buyer will notify this Credit assignment to the Debtor.
7. Governing Law
This agreement is constructed under the laws applicable inHong Kong; in the event of any conflict the parties will submit it to Hong Kong Courts.