N.Z. LOAN AND MERCANTILE.

Auckland Star, Volume XLIV, Issue 75, 29 March 1913, Page 11

N.Z. LOAN AND MERCANTILE.

REDUCTION OF CAPITAL SANCTIONED. (From Our Special Correspondent.) LONDON, February 22. A petition came before the Court of Chancery in November last to obtain its sanction to a scheme of arrangement which involved a large reduction of the capital of the New Zealand Loan and Mercantile Agency Co., Ltd. The special resolution for the reduction oi' the capital was as follows:-—" That the capital of the Company be reduced from £2,731,472, divided into 208,992 ordinary shares of £9 each, 746,048 ordinary shares of 10/ each, and 955,040 preference shares of 10/ each, to £2,000,----000 divided into 205.992 ordinary shares of £5 10/ each. 740.048 ordinary shares of 10/ each, and 955,040 preference shares of 10/ each, and that such reduction be effected by cancelling uncalled capital to the extent of £3 10/ per share upon each of the said 208,992 Ordinary snares of £9 each, and by reducing the nominal capital of each of such shares from £9 to £3 10/."

It was part of the scheme of arrangement that on its san.rtion by the Court a call of £5 per share should be made by the directors, payable in fonr instalments.

On the hearing before the Court in November last the debenture-holders of the company did not see their way to consent to the proposed reduction of the capital unless and until the first two instalments of the call had been paid, and the Court made an order sanctioning the scheme of arrangement so that the call could be made, but did not confirm the reduction of the capital of the company, but gave liberty to the company to apply for a further order confirming such Tediiction of capital on production of an affidavit that the first two instalments of the call made under the scheme of arrangement had been paid. Counsel applied last Thursday to the Court for an order confirming the reduction of the capital, and stated that on November 28th last the directors mad-8 a call of £5 per share upon each of the 208,992 ordinary shares of £0 each, credited as paid up to the extent of 10/ per share payable in four instalments. The first two calls had been paid, and all the creditors of the company had been paid. Counsel for the -debenture-holders consentin', o Mr. Justice Neville made an order confirming the reduction of the cato-tal, and dispensed with the further use of ih_ words " and redtKed."