COMPANY AFFAIRS.

Auckland Star, Volume LXIX, Issue 300, 20 December 1938, Page 8

COMPANY AFFAIRS.

MACDUFFS, LIMITED. KECOXSTK LOTION SCHEME. i The directors of Macduffs, Limited, in outlining the future policy of the company under the new board, consisting o£ Mi-skih. Charles Todd (chairman), J. g. Laud. W. J. Candy, Will Appleton and T. X. (iil>bs, have issued a circular to shareholders advising that at a meeting of creditors on November 22 there was a unanimous desire to see Mucdutfs continue as a trailing unit, and a moratorium for six months to May 22, 1939, wag granted. Creditors appointed a committee to collaborate with the director* and with power to call the crejito; » together torevise t.!ie situation in case ol any major change. The directors are satisfied that with piopcr management pi wins can be earned and propose that Mac-dulls I'roperties, Limited, with a capital of £jO,OOO, should be formed to take over for £90.000 the properties owned by Macduffs, Limited, winch would be charged a leaaoUfcWe rent, well within its capacity to pay. This new money with modified overdraft arrangements with the bank for futuw operations, it is considered, .should pay out the receiver and also creditors ©var the period. Approximately £37,000 to £40,000 of the capital of the propertiej company would need to be subscribed W shareholders or others. The balance to make up the price for the propertML namely £90.000, is to be found on first mortgage. The .properties now stand ifl the books of Mat Duffs. Limited, At £ 12."i.477, and sale at £90,01.K) would represent a loss to the present company on book values of £35.477. Shareholders are urged to subscribe to the new company when a definite announcement is made, in view of pressure towards acceptance of an offer involving winding-up, which, in the directors' opinion, would leave practically nothing for shareholders.

WHAKATANE PAPER MILLS. PROPOSED DEBENTURE ISSUE. — t Tliere were 54 nhareholders in Whakatane Paper Mills, Ltd., who attended a meeting in the C hamber of Commerce last evening and unanimously carried a resolution tstrougly retoinineiulinn that all shareholders should subscribe to the proposed £1.i0.000 debenture issue. Profwsor r. I. Worley presided. The managing director of the company. Mr. H. A. Horrocks. said the purpose ot the debenture issue was to pay the British and Swedish fitn.s who had supplied the equipment, the balance nwinif to tTiom being £80.000. and to provide for working capital and the purchase of raw materials required to be imported, mainly chemical pulp. The issue was receiving strong support from shareholders generally and the amount subscribed to date was approximately £50.000. • Mr. Horrocks said the plant was f?oini into production in the iirst week ot * Two shareholders attending the .meeting were appointed to attend a conference ot shareholders* delegates from Australia and Xow Zealand to l.c held at the companj s mills early next month. n - r( i \ resolution was unanimously carnca expressing firm confidence in Mr vocks and tbe l.oard of directors and sn faction with the manner m whudi the had so far conducted the administiatio of the company.