MONDAY, FEBRUARY 4, 1985
ONE COMPLEX LEGAL QUESTION THAT HAD TO BE RESOLVED WAS THE STATUS OF THE PRECIOUS METALS CERTIFICATES AND THE CERTIFICATE HOLDERS. IF THE QUANTITY OF PRECIOUS METALS WAS SUFFICIENT TO MATCH THE QUANTITY IN THE CERTIFICATES OF THOSE WHO HAD PAID IN FULL, AND IF IT WAS DECIDED THAT THESE PRECIOUS METALS BELONG TO THE CERTIFICATE HOLDERS, THE LATTER WOULD ONLY HAVE TO PROVE IN THE WINDING-UP FOR ANY SHORTFALL THAT MAY BE ATTRIBUTABLE TO STORAGE AND OTHER CHARGES. IF IT IS DECIDED THAT THE PRECIOUS METALS DO NOT BELONG TO THE CERTIFICATE HOLDERS THE PRECIOUS METALS WOULD BE ASSETS OF THE COMPANY, AND THE CERTIFICATE HOLDERS WOULD THEN HAVE TO PROVE IN THE WINDING-UP AS ORDINARY UNSECURED CREDITORS AND ACCEPT WHATEVER DIVIDEND IT WAS POSSIBLE EVENTUALLY TO DECLARE. THE POSITION OF CLIENTS OF THE COMPANY WHO HAD OPERATED PRECIOUS METALS ACCOUNTS ON MARGIN WAS EVEN MORE COMPLEX.
MR GLEESON WAS NOT PREPARED TO EXPRESS ANY VIEW ON EITHER THE FULLY PAID CERTIFICATES OR THE MARGIN CERTIFICATES AND SAID THAT THE WHOLE QUESTION OF THE CERTIFICATE HOLDERS AND THE PRECIOUS METALS WOULD REQUIRE A RULING OF THE COURT. THIS WOULD BE OBTAINED AS SOON AS PRACTICABLY POSSIBLE. IN THE MEANTIME CERTIFICATE HOLDERS SHOULD FILE PARTICULARS OF THEIR CERTIFICATES WITH THE OFFICIAL RECEIVER'S OFFICE SO THAT THE AMOUNT OF THEIR CERTIFICATE AND THEIR PERSONAL DETAILS COULD BE CHECKED AGAINST COMPANY RECORDS.
ANOTHER QUESTION TO BE RESOLVED WAS THE STATUS OF THE DEPOSITORS WHOSE RECEIPTS WERE ISSUED IN THE NAME OF DEAK AND CO. (MACAU) LTD. MR GLEESON SAID THAT BOTH THE CERTIFICATE HOLDERS AND THE DEPOSITORS WOULD BE WELL ADVISED TO SEEK INDEPENDENT LEGAL ADVICE AND TAKE WHATEVER ACTION WAS NECESSARY TO PROTECT THEIR RESPECTIVE INTERESTS WITHOUT DELAY.
CERTAIN OF THE DEAK COMPANIES IN THE UNITED STATES HAD COMMENCED PROCEEDINGS IN NEW YORK UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. NEW YORK ATTORNEYS HAD BEEN INSTRUCTED AND TWO LAWYERS OF THE OFFICIAL RECEIVER'S OFFICE WERE IN NEW YORK AT PRESENT TO ENSURE THAT THE INTERESTS OF DEAK-PERERA FAR EAST ARE PROTECTED AS FAR AS POSSIBLE.
A FURTHER STATEMENT REGARDING THE AFFAIRS OF THE COMPANY WOULD BE MADE AT A LATER DATE WHEN THE POSITION REGARDING ASSETS AND LIABILITIES HAD BECOME CLEARER AND VARIOUS LEGAL QUESTIONS HAD BEEN RESOLVED.
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