CHINATOWN DEVELOPMENT COMPANY LIMITED AND LIVERPOOL CITY COUNCIL
For Immediate Release
The Directors of China Town Development Company Limited are pleased that the High Court of Justice have today granted the Company an injunction prohibiting Liverpool City Council from issuing a winding up petition against them for outstanding monies in respect of the Chinatown project in Liverpool. It is highly likely that a substantial costs order in the Company’s favour will follow.
Throughout this whole dispute China Town Development Company Limited have offered to complete the purchase of the Phase 2 lease so long as this was then granted to them but the Council have always refused this offer. Instead they have chosen to make gain from adverse media reports simply suggesting that the Company owed them a million pounds and were seeking to renege on the deal, this was never ever the case. The Council have already received nearly £1.45m from the Company in respect of the Phase 1 and 2 leases and the Company have invested a further £10m in the overall project.
Furthermore Liverpool City Council were seemingly happy to agree very flexible terms when China Town Development Company Limited were in sale negotiations with the Council’s preferred buyer , Your Housing Group , but when these negotiations turned sour there was a sea change in their attitude. This culminated in a hasty , clumsy and misleading televised interview by the Deputy Mayor making mention of a report to the National Crime Agency and also stating that the Council’s sole objective was allegedly to protect the overseas buyers on Phase 1. However this was later disavowed by Mayor Anderson in an interview at best riddled with errors and omissions.
The Council’s intention here seems to be to take Chinatown back into their ownership but quite simply this is never ever going to happen. They have sold their interests in the project to Chinatown Development Company Limited and no matter the public money they seem intent on wasting, no Court proceedings are ever going to give them the land back. No doubt Liverpool City Council will attempt to make light of today’s judgement by Mr Justice Barling but it sends a clear message to them that the Courts will not tolerate inappropriate litigation.
The Directors have made it clear that it is their intention to dispose of their interest in the Chinatown project. They can either do this harmoniously or in tandem with Liverpool City Council (thereby better assuring delivery of the development to the overseas buyers and the City) or whilst mired in expensive and unnecessary litigation (which will only cost the City’s tax payers more). It is their hope that the Council choose the former option but if not then further proceedings will also be vigorously defended.
China Town Development Company Limited
19th December 2017
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