"Lunar Embassy" office auctioned off for bank loan default
www.chinaview.cn 2007-08-05 09:29:09   Print

    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 the loan.

    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 yuan)

Editor: Song Shutao
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