XN000022-1985-08-12 — Page 6

UN

MONDAY, AUGUST 12, 1985

U.S. COURT APPROVES SALE PROPOSAL OF DEAK ASSETS

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THE OFFICIAL RECEIVER AND LIQUIDATOR OF DEAK PERERA FAR EAST LIMITED (DPFE), MR NOEL GLEESON, CONFIRMED TODAY THAT THE NEW YORK BANKRUPTCY COURT HAD APPROVED PROPOSALS, UNDER CHAPTER 11 OF THE 2.S. BANKRUPTCY CODE, FOR THE SALE OF CERTAIN ASSETS OF DEAK AND CO INC (DEAK), INCLUDING ITS SHAREHOLDING IN FOREIGN COMMERCE BANK (FOCO BANK), FOR A CONSIDERATION IN THE REGION OF .$.45 MILLION.

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HE CONFIRMED THAT NO BETTER OFFER WAS FORTHCOMING WHICH WOULD HAVE BEEN ACCEPTABLE TO THE U.S. COURT AND THE CREDITOR'S COMMITTEE IN NEW YORK.

THE PROCEEDS OF SALE WILL BE HELD TO ORDER OF THE U.S. COURT PENDING RESOLUTION OF THE CLAIMS OF ALL THE CREDITORS AGAINST DEAK

THE OFFICIAL RECEIVER HAS ASSERTED CLAIMS IN THE U.S PROCEEDINGS ON BEHALF OF DPFE FOR POTENTIALLY VERY LARGE SUME. THE STATUS AND FULL EXTENT OF THESE CLAIMS IS THE SUBJECT OF LEGAL ARGUMENT AND NEGOTIATION WITH THE PARTIES IN THE U.S. AND MR GLEESON WAS NOT PREPARED TO FORECAST WHAT THE OUTCOME WOULD BE.

IF NECESSARY, THE OFFICIAL RECEIVER WILL COMMENCE LEGAL PROCEEDINGS IN THE U.S. TO CLARIFY DPFE'S POSITION. BECAUSE OF THIS AND THE NEED NOW TO DRAW UP A FORMAL REORGANISATION PLAN FOR DEAK AND ITS ASSOCIATED COMPANIES FOR FILING IN THE U.S. COURT. IT IS NOT POSSIBLE TO SAY WHAT DPFE MAY BE ABLE TO RECOVER FROM THE PROCEEDS OF THE APPROVED SALE.

HE BELIEVED THAT THE REORGANISATION PLAN REQUIRED BY U.S. LAW IS UNLIKELY TO BE CONFIRMED BY THE U.S. BANKRUPTCY COURT BEFORE THE END OF THIS YEAR.

THE OFFICIAL RECEIVER IN HONG KONG HAS RETAINED EXPERIENCED NEW YORK BANKRUPTCY LAWYERS TO REPRESENT DPFE'S INTERESTS IN THE CONTINUING NEGOTIATIONS.

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