Deak Says It Emerged From Bankruptcy
The parent of Deak-Perera U.S., the nation’s oldest and largest non-bank foreign exchange and precious metals dealer, announced Tuesday that it has emerged from bankruptcy proceedings with a new structure, a new president and plans for expanding.
Deak & Co., which had filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code in December, 1984, said Martin Properties Ltd., a publicly owned, Australia-based firm, had purchased a 75% interest in the stock of Deak & Co. for more than $10 million.
The remaining 25% will be held in trust for management and employees, Deak said.
Deak already sold its Foreign Commerce Bank in Zurich, Switzerland, to a Singapore investor group for $48 million. That group had been represented by Chan Cher Boon, a Singapore attorney.
The closing with Martin Properties took place on April 25, Deak said. The bankruptcy judge gave final approval to the reorganization plan on April 14, it said.
Under the plan, creditors will be receiving 48 cents for every dollar that is owed to them, Deak said.
Deak & Co. listed assets of $62.2 million and liabilities of $95 million when it filed its Chapter 11 petition.
Arkadi Kuhlmann, former executive vice president of Deak Canada, has been named president and chief executive of the new entity. He is 38.
R. Leslie Deak, son of the late Nicholas Deak, who was a founder of the firm, will have no active role in the new company. R. Leslie Deak had served as president and chief executive of Deak-Perera U.S. He resigned in September.
Nicholas Deak, a Hungarian immigrant who established his firm in 1939, was shot to death in his office in November by a deranged woman. He was 80 years old and at the time served as chairman of Deak-Perera U.S.