Item 1.03. Bankruptcy or Receivership.
On June 1, 2010, the Boards of Directors (the â€œBoardsâ€) of Infoscience Media Limited and Info Smart Technology Limited, our wholly owned subsidiaries incorporated in Hong Kong, approved the decision to file Creditorâ€™s Voluntary Winding Up of both companies, according to the relevant law of Hong Kong Special Administrative Region, Peopleâ€™s Republic of China. The Boards believed that it was in the Companyâ€™s best interest to wind up both companies because they owe significant amount of debts and cannot continue their business. We have commenced the process of filing voluntary liquidation with the court in Hong Kong. Yung Kwok Chung will be appointed as Provisional Liquidator of both companies upon filing of the voluntary liquidation.
Infosmart Group, Inc. was one of the biggest DVDR manufacturers in Hong Kong and its Brazilian subsidiary (Discobras) was the biggest DVDR manufacturer in South America.