N.Z. LOAN AND MERCANTILE.

Auckland Star, Volume XLIV, Issue 88, 14 April 1913, Page 11

N.Z. LOAN AND MERCANTILE.

EEOONSTRUCTiaN- PRELMmAKEES COMPLETED.] ■;lTrom Our Special -Correspondent.) '-' LONDON, March 7. The legal formalities relating to the reorganisation of the capital account of the New Zealand Loan and Mercantile Agency Company have been completed with the sanction given by Mr Justice Neville a few days ago to the scheme set before him. Hitherto there has been a prior lien debenture debt of £2,350,000, a second debenture debt of £540,000, and £405,000 of third ' debentures, together with the £155,000 of paid up ordinary capital, while the uncalled liability on the latter issue amounted to no less than f 1.766.000. Such a state of affairs, of course, rendered the shares' practically- ' unmarketable- • • Under the scheme which has now been agreed' to there will be £kO.QQ,QQQ. of prior, lien-de-bentures, £1,000.000 of second debentures, £1,000,000 of preference stock, and a similar amount of-ordinary stock. In' order to bring about these alterations it has been necessary to call up the greater part of the uncalled ordinary capital, and to enable holders of the s"hares to meet their liability a special cash bonus of 15/ per 10/, share has been declared. A eabls recently received annmmces that the outlook is very encouraging just now, and agricultural conditions in Xew Zealand are satisfactory. . The company daes not itself engage directly ill agricultural operations, it lends money to those connected wif grazing and farming, and is therefore much interested in weather conditions. At the request of the directors, Mr Alfred Shepherd -has 'recently -agreed ia join the Eoa-rd,. and his. long experience, of Australasian land and mortgage business should be of great benefit to the concern. As- shareholders are aware, the prosperity of the undertaking has advanced considerably during recent years, though owing to the complicated conditions of the capital account it has been difilcrult to bring this home in tangible form to tiip proprietors. Now, however, that the further participation of certain debenture holders in surplus profits have been done away -with, it will be possible to pay larger dividends than hitherto, and the general outlook is regarded as decidedly encouraging. It has taken over two.' years £o carry out the reorganisation, and the manner in -which the matter has been handted reflects much credit on the committee- al share and debenture holders -entrusted with the task.