A rescue package still eludes embattled electronics company Yeebo International, which is fighting a multi-million dollar legal action, owes $250 million to a number of banks and has yet to finalise a recapitalisation plan needed to stave off bankruptcy. New details released by management indicated the race to re-finance the company is likely to go down to the wire as a September 12 deadline approaches and the company's future becomes increasingly uncertain. Yeebo is under investigation by the Commercial Crimes Bureau for financial irregularities in its 1995 accounts. It is also suing its former chairman and most of its former directors for an alleged multi-million dollar fraud. Nine banks joined forces in early August to lend Yeebo $251 million to keep the company afloat. They agreed not to demand repayment before August 31 and also agreed not to take legal action to recover the money. After the deadline expired, one of the nine banks, National Bank of Canada, demanded repayment of its $23 million loan, Yeebo said. The remaining eight banks have not asked for payment. The banks have insisted a viable recapitalisation plan be submitted by Thursday and have told the board unless a workable plan is forthcoming, their agreement not to take legal action to recover the loans will no longer be kept. 'The directors have been actively negotiating recapitalisation plans with various potential investors,' the company said. 'To date, four written proposals have been received by the company.' Yeebo said the directors were working with accountants Ernst & Young and New China Hong Kong Capital analysing and comparing the proposals. It said it was confident the Thursday deadline would be met. Trouble started for Yeebo after it initially reported a $95.7 million profit for the year to March 31, 1995, but revised this drastically to a $139 million loss. Earnings per share were also dramatically lowered from 21.2 cents to a loss of 30.77 cents. Following an investigation, the company commenced legal proceedings on the suspicion 'substantial frauds have been perpetrated against the group'. The alleged frauds are understood to include overstated sales, unrecorded borrowings and the inflation of the value of company assets. On May 17, it announced it was seeking the recovery of $217 million from several individuals and companies, including former chairman Makie Hui Po-yuen, all of whom have defended themselves against the allegations. 'After obtaining legal opinion, the company firmly believes these defences have no valid grounds and the company will continue with legal proceedings,' the company said. The company is also facing legal action in China with Kin Son Milkyway Electronic Holdings claiming damages of 25 million yuan (about HK$22.57 million) from both Yeebo and Kin Son Electronics. Yeebo instructed its lawyers to fight the action. A preliminary hearing has been held in Shenzhen and a decision is expected by the end of the year.