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25th FEBRUARY 2020 UPDATE


As loan-note holders are aware, the payment which we received in June was £450,000 below the agreed amount and after discussion with Pamela, (CFC's China CEO), it was agreed that the payment would be deferred to 31st December 2019. When I was in China in November, I met up with Pamela and the timing for the repayment was confirmed.

In December when I chased for a confirmation of the repayment date, Pamela said that she had met some unexpected business issues and needed to defer the payment until after Chinese New Year (CNY) (25th January 2020). Unfortunately, after CNY, the scale and impact of the coronavirus was starting to be felt which resulted in Pamela stating that she couldn't pay anything. After further discussion, she agreed to pay £100,000 (received with our lawyers in Singapore) and depending on the impact of virus, she can pay the balance of £350,000 on 30th June 2020.

To put the virus impact into context, Pamela's email to me stated:

The coronavirus is a disaster to China and till now almost all of China's provinces, cities, counties, villages, residential communities are in lock down. People are forced to not going out by local government and community committees and can only stay at home. There’s a huge danger of the virus spreading by people gathering and moving. Till now, most of factories and commercial movements have closed their doors, including us. We are facing an unprecedented test. I don't know the worse degree of China's society and economic in 1H 2020. But I can see that my business is facing a challenge to survive in 1H 2020.

Obviously, we need CFC in China to continue to trade as there is a further payment of £1.3 million due.

In the interim, once the funds are received in the UK, we will make a further distribution of £60,000, after taking account of audit fees, contingency and other costs.

This is far from ideal, however at this stage I believe we must be supportive of Pamela.



John McLean
Chairman
25th February 2020



12th APRIL 2019 UPDATE


COMPANIES HOUSE


I am pleased to report that after extensive correspondence and appeals, we have been successful in our endeavours with Companies House concerning the penalty fines for our late accounts. As a result, the £45,000 fine has been withdrawn and as a consequence the Company will now make a further distribution of £50,000 in April.

In achieving this result, I would particularly like to thank my board colleague, Clifford Halvorsen for his hard work and detailed appeal drafting, as without him, the Company would have had to incur a significant amount of legal time at a substantial cost.



John McLean
Chairman
12th April 2019



4th MARCH 2019 UPDATE


Following my earlier update ( 17th December 2018), Pamela contacted us in February to state that trading was difficult and that she was unable to remit the outstanding balance of £1,250,000. She did however agree to remit £800,000 which was received last week. Accordingly, taking into account the December receipt, we have received £1,050,000 and after discussion with the principal a loan- note holders, a distribution of £900,000 will be made this week.

The outstanding balance of £450,000 is due to be paid by 31st December 2019, the exact timing of which is still to be agreed with Pamela.



John McLean
Chairman
4th March 2019



17th DECEMBER 2018 UPDATE


In early December, Pamela (Feng Bo) contacted the Company to request a deferment of the payment schedule for the £1,500,000 which was due to be paid by 31st December 2018. Following discussions both with her and the principal loan-note holders, agreement was reached whereby the payment date would be extended to 5th February 2019, conditional on £250,000 being paid to the Company by 21st December 2018 as a part payment of the amount due. A telegraphic transfer for £250,000 was made by Pamela on 17th December 2018.

Based on the above and the receipt of £1,250,000, it is our intention to make a further distribution to loan-note holders in February 2019.



John McLean
Chairman
17th December 2018