Local ex-songstress Stella Ng, who owes dark chocolate cake firm Awfully Chocolate a total of $249,000, was declared bankrupt in a recent lawsuit.

According to Lianhe Zaobao, she signed a franchise agreement with Awfully Chocolate in 2006.

However, the cake firm terminated her licence in July 2007 and sued her company for violating terms in the franchise contract.

As the guarantor of her company, she was ordered by the court to pay approximately $224,000 excluding interest payments.

However, as she did not make any payment, the cake firm decided to issue a letter of statutory demand in January this year to get back the amount of money she owed.

According to the law, she must clear her debts within 21 days of receiving the letter of statutory demand or face being sued for bankruptcy.

As she did not respond to the letter, the cake firm brought the case to court on April 23 this year.

To date, Stella Ng owes Awfully Chocolate a total of $249,000, including interest payments.

Following the termination of her franchisee licence, Stella promptly set up a new bakery "Black As Chocolate".

Her lawyer told Lianhe Zaobao that he would issue a plea to the court so as to slow down the proceedings of Stella's bankruptcy declaration.