Cheung Kong (Holdings) is to be selective in pursuing home-buyers who have defaulted on flat purchases. The developer last night said it would differentiate between defaulters according to their financial situation. Some were buyers in financial trouble but others who had the ability to pay had chosen to back out merely because of the price downturn, it said. Cheung Kong would sue those who were financially sound for damages but would deal with the troubled ones on a discretionary basis, the company said in defence of its moves to sue some defaulting buyers of its Maywood Court flats in Tin Shui Wai. It said the money which could be sought through litigation amounted to 'hundreds of millions' of dollars. The company's statement did not reveal the number of defaults, or how many defaulters faced litigation. The amount sought would depend on the difference between the resale price and the original sale price of the flats, minus the deposits forfeited. Analysts suggested there were about 400 defaults on Maywood Court, part of the Kingswood Villas project. There had also been defaults at another Cheung Kong project, Laguna Verde in Hunghom. The developer said its action was in accordance with the spirit and principle of the contracts. It said not taking action would hurt shareholders' interests, be 'unfair' to buyers who had honoured deals and set a 'bad precedent' for the market.