CHINA Aoyuan Property (03883.HK) has made an announcement referring to its previous announcements in relation to a discloseable transaction of an acquisition of loan entered into by the group and the enforcement of security in accordance with the loan agreement.

China Aoyuan announced that subsequent to the hearing of the application on 20 October 2011, the High Court of Hong Kong handed down the judgment on 19 December 2011, wherein the court refused Hong Da Development & Investment's application for an interlocutory injunction restraining the parties, the purchaser (Zhen Fu Limited), the security agent and the receivers from disposing of and/or dealing with the security assets and the shares of Beijing Yaohui Real Estate Co. Ltd registered in the name of Century Profit Zone Investments without the consent of Hong Da. Under such circumstances, the interim restriction imposed on the receivers on 19 August 2011 from dealing with the security assets and the relevant interest in Beijing Yaohui was discharged. The High Court of Hong Kong further granted an order that the costs of the application should be paid by Hong Da to the parties, the purchasers, the security agent and the receivers.

Hong Da has indicated to the court that it intends to apply for leave to appeal against the above judgment, and such application will be heard at the High Court of Hong Kong on 28 December 2011.

China Aoyuan will instruct lawyers to handle further legal proceedings and continue to use its best endeavours to protect its interests and shareholders as a whole.

Source:chinesestock.org