Having lost millions of dollars selling computers on credit to Cheflink, a distributor in China, Compaq is working to resolve legal issues. Compaq said on May 13, a Hong Kong court ordered the winding-up of Cheflink, which has yet to pay Compaq. Cheflink fought the petition, but lost and a receiver was appointed as the provisional liquidator. On May 20, Cheflink appealed and a hearing is set for early October. Compaq said it was also continuing its claim against Cheflink's principal director and shareholder, Lam Chi-man. As there is no final settlement with Cheflink yet, Compaq said it would continue to pursue legal action against the company in Hong Kong.