(Incorporated in the Cayman Islands with limited liability) (Stock Code: 8061) ANNOUNCEMENT

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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8061) ANNOUNCEMENT Reference is made to the Half Year Report 2015 and the Trading Halt announcement dated 24 August This announcement is for the purpose of updating shareholders and potential investors on the recent developments and implications to the Company of the proceedings in Indonesia relating to the Indonesian Bankruptcy Order. The Company had on 21 August 2015 received a written decision of the Indonesian Supreme Court dismissing the Company s Appeal against the Indonesian Bankruptcy Order. An English translation of the Indonesian Supreme Court s decision was received by the Company on 28 August 2015 whereas a final corrected English translation of the Indonesian Supreme Court s decision was received by the Company on 2 September A copy of the Supreme Court s decision is annexed. The Company has been advised by its Indonesian lawyers that the Company has a final avenue of appeal by way of a petition for judicial review to the Indonesian Supreme Court after the Company is in receipt of official notification of dismissal of the Company s Appeal. As stated in the Company s previous announcements, the Company intends to lodge such an appeal. The Indonesian Supreme Court s decision is therefore not final. The Company is currently seeking legal advice from its Indonesian lawyers on the implications of the Indonesian Supreme Court s decision and the lodgement of a petition for judicial review. As at the date of this announcement, the Company is a solvent company, has not been wound up nor has it received any petition for winding up of the Company pursuant to the laws of the Cayman Islands where the Company is incorporated nor in Hong Kong where the Company has its head office and is listed on the GEM. Accordingly, the Company continues to carry on business as usual in Hong Kong. The Company will make further announcement(s) to update its shareholders as and when further developments should arise and/or in compliance with GEM Listing Rules. At the request of the Company, trading in the shares of the Company which was halted on 24 August 2015 pending this announcement shall resume on 7 September As would be recalled, pursuant to First Media s continuous and further efforts in recovery of the Debt due from the Company, on 26 December 2012, First Media filed a petition seeking amongst other things, an order for temporary suspension of obligation for payment of debts. 1

2 The Panel of Judges of the Indonesian Court had on 15 January 2013 granted an order for temporary suspension of obligation for payment of debts and the Company was required to submit a composition plan by 28 February 2013 for the purpose of settling the Debt due to First Media. However, on 24 January 2013, on the application of Astro, the Hong Kong Court granted an injunction restraining the Company from discharging the Debt and restricting the Company from taking any further actions in the Indonesian proceedings. The Company was therefore prevented and was accordingly unable to submit a composition plan within the time stipulated and the Indonesian Bankruptcy Order was made against the Company in Indonesia on 5 March So in effect Astro through its actions taken through the Hong Kong Court had frustrated the Company s genuine effort to present a composition plan to the Indonesian Court or to take any further steps in the Indonesian legal proceedings. Astro has been relentless in making sure that the Company remains stuck in the crossfire in the dispute between Astro and First Media of which the Company is not a party involved nor seek to be interested in. On 13 March 2013, the Company filed the Company s Appeal against the Indonesian Bankruptcy Order to the Indonesian Supreme Court appealing against the Indonesian Bankruptcy Order The Company was notified on 5th August 2013, that according to the website of the Indonesian Supreme Court, the Company s Appeal to that court on 13th March 2013 against the Indonesian Bankruptcy Order was dismissed. The Company has been advised by its Indonesian lawyers that the Company has a final avenue of appeal against the Supreme Court s decision dismissing the Company s Appeal by way of a petition for judicial review, after the Company is in receipt of official notification of dismissal of the Company s Appeal. As reported in the Company s Half Year Report 2015, the Company had not received official notice of dismissal of the Company s Appeal and accordingly, the petition for judicial review has yet to be filed. The Company had on 21 August 2015 received a written decision of the Indonesian Supreme Court in Indonesian language, dismissing the Company s Appeal against the Indonesian Bankruptcy Order. An English translation of the Indonesian Supreme Court s decision was received by the Company on 28 August 2015 whereas a final corrected English translation of the Indonesian Supreme Court s decision was received by the Company on 2 September In its decision, the Indonesian Supreme Court, comprising a panel of 3 justices of the Indonesian Supreme Court, having read all the relevant documents and having considered all the grounds of appeal submitted by the Company in the Company s Appeal, was of view that the Panel of Judges of the Indonesian Court had not erred in making the Indonesian Bankruptcy Order as the Company has failed to submit a composition plan in accordance with the Indonesian laws and have not filed a petition for extension of the temporary suspension of obligation for payment of debt in accordance with the Indonesian laws as the Company had merely submitted an application for a permanent extension of time of 270 days without any composition plan. In addition, First Media did not consent to the Company s application for extension of time. Accordingly, the Company s Appeal was rejected by the Indonesian Supreme Court. As mentioned above, Astro through its actions taken through the Hong Kong Court had frustrated the Company s genuine effort to present a composition plan to the Indonesian Court within 45 days as was required pursuant to the order for suspension of obligation for payment dated 15 January 2013 or to take any further step in the Indonesian legal proceedings. Astro s actions had stifled the Company s abilities to resolve the dispute with First Media in Indonesia resulting in the Indonesian Bankruptcy Order made against the Company. Astro has 2

3 been relentless in making sure that the Company continues to be stuck in the crossfire in the dispute between Astro and First Media of which the Company is not a party involved nor seek to be interested in. As stated in the Company s previous announcements, the Company intends to lodge a petition for judicial review to appeal against dismissal of the Company s Appeal. The Indonesian Supreme Court s decision in dismissing the Company s appeal against the Indonesian Bankruptcy Order is therefore not final as it is still subject to final decision of the Indonesia Supreme Court in its decision on a judicial review. The Company has at all times maintained its position that it is prevented from settling the Debt due to First Media as a result of the Hong Kong Garnishee proceedings as it was caught in the crossfire between First Media and Astro. The Company continues to be caught in the crossfire by reason of the laws of the two different jurisdictions. On the one hand, the Company was ordered to make payment of the Debt to First Media in Indonesia pursuant to Indonesian laws. The Panel of Judges of the Indonesian Court in their decision dated 15 January 2013, granting the temporary suspension of obligation for payment of debt, ruled that as First Media and the Company have agreed as a term and condition in the Facility Agreement, that all legal relations between the Company and First Media including the Facility Agreement shall be exclusively governed by and construed in accordance with Indonesian laws, therefore the laws of Indonesia shall be applicable to the Company and to the Debt. On the other hand in the Hong Kong Garnishee proceedings, the Hong Kong Court although being informed about the Indonesian Bankruptcy Order and its consequences, has ruled that the Debt was a Hong Kong debt and made an order for Garnishee Order Absolute on 31 October 2013 on the same Debt to answer a debt due by First Media to Astro, (the Hong Kong court decision is pending appeal). The conflicting decisions of the Hong Kong Court and the Indonesian Court had resulted in the Company being in an impossible dilemma, as the Company cannot pay the same Debt twice; that is once to First Media in Indonesia pursuant to the Indonesia Bankruptcy proceedings and a second time to Astro in Hong Kong pursuant to the Hong Kong Garnishee proceedings. At the same time, as a consequence of the injunctions granted by the Hong Kong Court, the Company was prevented from submitting the required composition plan in accordance with the Indonesian laws. As a result, the Indonesian Bankruptcy Order was made against the Company despite the Company being solvent. As at the date of this announcement, the Company is a solvent company, has not been wound up nor has it received any petition for winding up of the Company pursuant to the laws of the Cayman Islands where the Company is incorporated nor in Hong Kong where the Company has its head office and is listed on the GEM. Accordingly, the Company continues to carry on business as usual in Hong Kong. The Company is currently seeking legal advice from its Indonesian lawyers on the implications of the Indonesian Supreme Court s decision and the lodgement of a petition for judicial review. The Company will make further announcement(s) to update its shareholders as and when further developments should arise and/or in compliance with GEM Listing Rules. At the request of the Company, trading in the shares of the Company which was halted on 24 August 2015 pending this announcement shall resume on 7 September

4 Definitions Astro Board Company Company s Appeal Debt Director(s) Facility Agreement First Media Garnishee Order Absolute GEM GEM Listing Rules Hong Kong Hong Kong Court Hong Kong Garnishee proceedings Indonesia Astro All Asia Networks Plc and certain of its affiliated companies being parties to the arbitration case No. 062/2008 at the Singapore International Arbitration Centre in Singapore the Board of Directors of the Company AcrossAsia Limited, a company incorporated in the Cayman Islands with limited liability and the shares of which are listed on the GEM The Company s Cassation Petition dated 13 March 2013 lodged at the Indonesian Supreme Court appealing against the Indonesian Bankruptcy Order The Loan in the principal sum of US$44 million granted by First Media to the Company together with interest pursuant to the Facility Agreement the director(s) of the Company the agreement dated 30 June 2011 made between First Media and the Company whereby First Media agreed to grant a credit facility in the principal sum of US$44 million to the Company subject to and upon the terms and conditions contained therein PT First Media Tbk, a company incorporated in Indonesia with limited liability, the shares of which are listed on the Indonesia Stock Exchange and a subsidiary of the Company the sealed garnishee order absolute issued by the Hong Kong Court dated 31 October 2013 the Growth Enterprise Market of the Stock Exchange the Rules Governing the Listing of Securities on GEM the Hong Kong Special Administrative Region of the People s Republic of China the Court of First Instance of the High Court of Hong Kong the proceedings (HCCT No.45 of 2010) in Hong Kong commenced by Astro the Republic of Indonesia 4

5 Indonesian Bankruptcy Order Indonesian Court Indonesian Supreme Court Indonesian Supreme Court s decision Stock Exchange the bankruptcy order against the Company dated 5 March 2013 made by the Indonesian Central Jakarta District Commercial Court in case No. 64/PKPU/2012/PN.Niaga.Jkt.Pst the Indonesian Central Jakarta District Commercial Court the Supreme Court of Indonesia written decision of the Indonesian Supreme Court dated 31 July 2013 dismissing the Company s Appeal a copy of which in Indonesian language was received by the Company on 21August 2015 The Stock Exchange of Hong Kong Limited By Order of the Board Albert Saychuan CHEOK Chairman Hong Kong, 4 September

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29 This announcement, for which the Directors (namely, executive Director: Mr. Vicente Binalhay ANG; and independent non-executive Directors: Mr. Albert Saychuan CHEOK, Dr. Boh Soon LIM and Mr. Thomas Yee Man LAW) collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading. This announcement will remain on the Latest Company Announcements page of the GEM website at for at least seven days from its date of publication and on the Company s website at 29