Gao Fuxiang: China Network and CDC are two independently operated companies

Absrtact: Gao Fuxiang, general manager of China Net company listed in Hong Kong yesterday, said in an interview with this reporter that the US parent company's entry into bankruptcy protection procedure did not affect the operation and assets of China Web portal, and that the Chinese web portal did not repay the parent company's debt in law.

Gao Fuxiang, general manager of the Hong Kong-listed China network, said yesterday that the US parent company's entry into bankruptcy protection procedure did not affect the operation and assets of the China Web portal, and that the Chinese web portal had no legal obligation to repay the parent company's debts.

The Nasdaq-listed China Net Investment Group (CDC group) filed for bankruptcy protection in the US District Court on October 4, and the application was subsequently approved. CDC holds a 79% per cent stake in the Hong Kong-listed China Network, which operates the portal's China network.

Is it possible for CDC group to sell its stake in the China web portal to raise money to repay its debts? Gao Fuxiang did not respond directly, but said that if the conditions were right, he believed that CDC would not rule out all the benefits of asset mobilization, including and not limited to the many measures permitted by the legal reorganization process, such as

Reporters from close to the Chinese network learned that there are already institutional investors to the CDC expressed the intention to cooperate, including the transfer of shares and other forms of cooperation.

Gao Fuxiang said the Chinese network and CDC are two independent companies, and the CDC filing for bankruptcy protection and debt-servicing practices will not have any impact on the operation of the Chinese network. In law, the Chinese network has no obligation to repay the CDC's debt. Moreover, the Chinese network is economically viable and does not rely on the CDC's input.