BEIJING, Aug. 5 (Xinhua) -- The office of an infamous company known as
Lunar Embassy has been auctioned off to offset the defaulted bank loan the
company CEO owed a local credit cooperative in Hebei Province 11 years ago.
The office, with a floor space of 178.96 square meters and situated inside
Shenfen Building along the northern 3rd Ring Road of Beijing, was bought at a
price of 1.51 million yuan by a real estate developer from Hebei at an open
auction held in Beijing on Wednesday.
The office buyer was not identified.
The auction was done without the presence of Li Jie, chief executive
officer of the Beijing Lunar Village Aeronautics Science and Technology Co.
Ltd., commonly known as Lunar Embassy.
Lu Guoqing, an official with the People's Court of Zhaoxian, a county in
Hebei, insisted that before the auction, they had informed Li of the auction and
also ran an announcement on the media.
According to Lu, Li borrowed 1.65 million yuan from the Liqu District
Credit Cooperative in Zhaoxian County in January 1996 when he was running a
business in Shijiazhuang, the provincial capital of Hebei, but failed to repay
Shijiazhuang Intermediate Court handed down a final ruling last November
demanding Li pay back the loan. The Zhaoxian County Court issued a warning to
take back Li's house property and sent people over to Beijing to seal Li's
office-cum-residence apartment on July 11.
"We will contact relevant departments to have all documents concerning
transaction of the apartment done properly after the auction and the money from
the auction will be used to offset the loan Li owed," said Lu, whose court
supervised the auction.
While admitting he was aware of the auction, Li cited bad business for
failing to repay the loan. He complained the apartment was undervalued and said
he would appeal his case to Hebei Higher People's Court.
Li, 42 and a water resources major from Shijiazhuang, capital of North
China's Hebei Province, hit the headlines several times these years.
He registered his company in September, 2005, offering to sell an acre of
the moon for 298 yuan. His company, previously known as "Moon Embassy in China",
later applied to commercialize World Cup air.
These two sales plans were both rejected by the local administration for
industry and commerce. Though Li sued the authority for a revision, the lawsuits
all concluded with rejections at the court.
In one case, for instance, Beijing Second Intermediate People's Court ruled
on June 19 against Li's appeal, saying, "Air is too vague and unstable a concept
to be covered by commercial classifications." (One U.S. dollar equals to 7.60