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.