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CHINA TING GROUP HOLDINGS LIMITED

華 鼎 集 團 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 3398)

INSIDE INFORMATION

UNITED STATES BANKRUPTCY PROCEEDINGS FILED BY A CUSTOMER OF THE GROUP

This announcement is made by the board (the ''Board'') of directors (the ''Directors'') of China Ting Group Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).
The Board would like to announce that one of the ODM/OEM customers of the Group, Coldwater Creek, Inc. (''Coldwater Creek''), together with certain of its affiliates, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on 11 April 2014 (the ''Petition Date''). The Chapter 11 cases are being jointly administered for procedural purposes under Case No. 14-10867.
A wholly-owned subsidiary of the Company, Concept Creator Fashion, Ltd. (''Concept Creator''), is one of the suppliers of Coldwater Creek for garment and apparel items and has an amount due from Coldwater Creek of not less than US$2.16 million (equivalent to HK$16.85 million) as of the date of this announcement. Such amount represents the unpaid purchase price of the garment and apparel items produced by Concept Creator and delivered to Coldwater Creek during the period of five months on an open account basis prior to the Petition Date.
During the last few weeks, the Group received a number of documents relating to the bankruptcy cases and has sought legal advice on the appropriate steps to be taken to assert its claim for the amount due from Coldwater Creek, a portion of which may be entitled to administrative expense priority status. In addition, Concept Creator timely submitted a reclamation demand to Coldwater Creek in the total amount of US$2.16 million (equivalent to HK$16.85 million) asserting its rights under applicable law to reclaim certain of the goods received by Coldwater Creek while insolvent. While such demand remains pending, it is not expected to result in the physical return of goods to Concept Creator at this time. Concept Creator was listed as the eighth largest unsecured creditor of Coldwater Creek in the Consolidated List of Creditors Holding 30 Largest Unsecured Claims that Coldwater Creek filed with the Bankruptcy Court. Representatives of Concept Creator attended a meeting on 24
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April 2014 conducted by the Office of the United States Trustee to appoint the official committee of unsecured creditors in the Chapter 11 cases, but was not selected to serve as a member of the committee.
As a result of the bankruptcy cases, an automatic stay has been imposed under United States bankruptcy law which prohibits all creditors, including Concept Creator, from, among other things, (a) taking any action to collect their prepetition debts other than through the bankruptcy process, (b) taking any action to exercise control over property of Coldwater Creek, and (c) commencing or continuing any lawsuit against Coldwater Creek outside of bankruptcy.
As of the date of this announcement, the Directors are not able to ascertain the amount of any anticipated distributions on account of general unsecured claims that may be issued to creditors like Concept Creator in the Chapter 11 cases. Coldwater Creek is pursuing an expedited process to conduct ''going out of business'' sales to liquidate its inventory and has filed a proposed disclosure statement and plan of liquidation which will be considered for approval by the Bankruptcy Court. The Official Committee of Unsecured Creditors has retained its own professional advisers and is advocating on behalf of the entire general unsecured creditor body and engaging with Coldwater Creek and its secured lenders with respect to the sale process, the proposed disclosure statement and plan of liquidation, and all other aspects of the Chapter 11 cases.
The Board will review the situation from time to time and will decide if a provision for doubtful debt for the full amount due would be required to be made. Any such provision, if decided to be made, could have a negative impact on the profitability of the Group for the year ending 31 December 2014.
Shareholders and potential investors of the shares of the Company are advised to exercise caution when dealing in the shares.
By order of the Board of
China Ting Group Holdings Limited
TING HUNG YI
Chief Executive Officer
Hong Kong, 9 May 2014
Unless otherwise specified, translations of RMB into HK$ in this circular are based on the rate of HK$1.0 = RMB0.80. No representation is made that any amount in HK$ and RMB can be or could have been converted at the relevant dates at this rate or any other rates at all.
As of the date of this announcement, the executive Directors are Mr. TING Man Yi, Mr. TING Hung Yi, Mr. DING Jianer and Mr. CHEUNG Ting Yin, Peter and the independent non- executive Directors are Dr. CHENG Chi Pang, Mr. WONG Chi Keung and Mr. LEUNG Man Kit.
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