XN000022-1985-02-04 — Page 4

MONDAY, FEBRUARY 4, 1985

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DEAK-PERERA FE LTD WINDING UP ORDERED

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THE REGISTRAR GENERAL, MR NOEL GLEESON, CONFIRMED THAT AN ORDER FOR THE WINDING UP OF DEAK-PERERA FAR EAST LTD WAS MADE BY THE HIGH COURT TODAY ON THE FINANCIAL SECRETARY'S PETITION AND THAT AS OFFICIAL RECEIVER HE HAD BEEN APPOINTED TO CARRY ON AS PROVISIONAL LIQUIDATOR OF THE COMPANY.

MR B.P. CLANCY, DEPUTY CROWN SOLICITOR, APPEARED FOR THE FINANCIAL SECRETARY AND MR A.R. HEARDER, ASSISTANT REGISTRAR GENERAL, REPRESENTED THE OFFICIAL RECEIVER. THERE WAS NO APPEARANCE FOR THE COMPANY AND THE PETITION WAS UNOPPOSED,

IN VIEW OF THE DOUBTFUL STATUS OF MANY OF THE CLAIMANTS IN THE LIQUIDATION, AND ALSO SINCE MANY OF THOSE WHOSE STATUS IS NOT IN QUESTION, MAINLY HOLDERS OF DISHONOURED CHEQUES, ARE OVERSEAS, IT WAS PROPOSED TO SEEK A REGULATORY ORDER FROM THE COURT TO DISPENSE WITH THE STATUTORY FIRST MEETING OF CREDITORS AND APPOINT THE OFFICIAL RECEIVER AS LIQUIDATOR.

THE TOTAL LIABILITIES OF THE COMPANY ARE ESTIMATED AT PRESENT TO BE IN THE REGION OF US$25M.

ON THE ASSET SIDE US$1.5M HAD ALREADY BEEN REALISED. THIS WAS MAINLY MONEY ON DEPOSIT WITH BANKS IN HONG KONG, THE PROCEEDS OF SALE OF STOCKS OF FOREIGN CURRENCY HERE AND THE SALE OF COMPASS TRAVEL. THERE WAS A GOOD PROSPECT ALSO OF RECOVERING APPROXIMATELY US$4M FROM AN OVERSEAS BANK IN THE NEAR FUTURE.

MR GLEESON SAID THAT DEAK-PERERA FAR EAST ALSO HAS A SUBSTANTIAL CLAIM AGAINST ITS NEW YORK HOLDING COMPANY, DEAK AND CO. INC., FOR WHICH A SECURITY OVER SHARES IN FOREIGN COMMERCE BANK (FOCO BANK) IN SWITZERLAND IS HELD. INVESTIGATIONS ARE ALSO PROCEEDING INTO THE TRANSFER IN EARLY DECEMBER 1984 OF MONIES OF THE COMPANY, PRESENTLY ESTIMATED AT APPROX. US$2M, OUT OF ONE OF THE COMPANY'S OVERSEAS ACCOUNTS. THERE WERE ALSO OTHER ASSETS OF THE COMPANY IN THE UNITED STATES WHICH ARE AT PRESENT FROZEN BY THE COURTS THERE. IN ADDITION A PROVISIONAL AGREEMENT HAD BEEN SIGNED FOR THE SALE OF THE COMPANY'S FOREIGN EXCHANGE BUSINESS IN HONG KONG FOR HK$3M.

MR GLEESON SAID THE OFFICIAL RECEIVER'S OFFICE HAS IDENTIFIED A SUBSTANTIAL QUANTITY OF GOLD, SILVER, PLATINUM, PALLADIUM AND IRRIDIUM IN HONG KONG, BRITAIN, AUSTRIA, SWITZERLAND AND THE UNITED STATES. THIS WAS NOW BEING HELD BY VARIOUS BANKS AND INSTITUTIONS IN THOSE COUNTRIES FOR THE ACCOUNT OF THE OFFICIAL RECEIVER, PRESENT INDICATIONS WERE THAT THIS WOULD APPROXIMATELY MATCH THE PRECIOUS METALS CERTIFICATES ISSUED BY DEAK-PERERA FAR EAST TO THOSE WHO HAD PAID IN FULL, BUT STORAGE AND OTHER CHARGES WOULD HAVE TO BE TAKEN INTO ACCOUNT.

/ONE COMPLEX