In the case of application for dispute over recourse of guarantee contract between
China Orient Asset Management Co., Ltd. Liaoning Branch (hereinafter referred to
as Orient Asset Liaoning Company) as the applicant and China Zhonghaizhi Co.,
Ltd. (hereinafter referred to as Zhonghaizhi Company)35 as the person subjected
to execution, which was to enforce designated by Liaoning High People’s Court.
Since the end of 1999, Zhonghaizhi Company owed Orient Asset Liaoning
Company US $2,288,514.57 and its interest. After placing the case on the docket,
the Court immediately and fully inquired and controlled the bank accounts of
Zhonghaizhi Company and froze more than RMB 700 thousand. According
to the property clues provided by Orient Asset Liaoning Company, the Court
found that Zhonghaizhi Company, as the major shareholder, held the stocks of
the listed company, and the case could be closed by selling the stocks directly,
but Zhonghaizhi Company requested the suspension of enforcement. In order to
avoid incalculable negative impact on the business development of the enterprise,
the Court did not rigidly take sell-off measures, but actively organized both the
two parties to calculate and negotiate repeatedly on the principal and interest of
the creditor’s rights. Finally, the two parties reached a settlement. Zhonghaizhi
Company actively fulfilled the outstanding principal and interest with the total
number of about RMB 47 million. After the case was closed, the listed company’s
additional stock placement was on schedule and not adversely affected.