N.Z. PERPETUAL FORESTS

Press, Volume LXXIV, Issue 22467, 30 July 1938, Page 13

N.Z. PERPETUAL FORESTS

WORK OF BONDHOLDERS’ COMMISSION STATEMENT BY MR BARTON Adverse criticism in Australia ~f the steps which the New Zealand Bondholders’ Incorporation Commission was taking to straighten out the affairs of bondholders in New Zealand Perpetual Forests. Ltd., was based on a number of misunderstandings, said Mr J. S. Barton, chairman of the commission, in Melbourne recently. Mr Barton is visiting Australia as the accredited agent of the New Zealand Government. When the commission was set up, said Mr Barton, the problem was complex and difficult. The contract was ill-defined and L complete, and legal and administrative difficulties lay in the way of attempting to bring it to fruition. These difficulties tended to be accentuated in the case of overseas bondholders who were contracting parties with what was to them a foreign company. However, the bondholders’ company was now in existence, administered by an elected board of directors. The second phase contemplated by the Bondholders’ Incorporation Act was no being entered upon, and it involved the adjustment of the rights of bondholders, between themselves, and of the bondholders’ company and of the bond-issuing company. It was hoped at an early date to be able to communicat the result to all the shareholders. The commission hac. been informed that the directors of the new company had the matter of realisation in hand, and they hoped to place full information in the hands of the bondholders at an early date. It was probable that the directors would come to Australia within the next six months to announce at first hand their plans for realisation of the forests.

Mr Barton said that the right of repurchase applied only to some of the bonds in the urst two issues. Furthermore, it was to be exercised before the planted land was handed over to the trustees for realisation. This right had been specifically dealt with, and at no stage had it been adversely affected by any act or order of the commission.

On the contrary, the commission could point to at least four special provisions in the order of incorporation designed to protect and preserve the rights of repurchase. More than 900 bondholders had used the simplified provision which the commission had offered, and had had their bonds repurchased. In the meantime, the companies had been working continuously and with full notice to all parties concerned toward the point of realisation. MINING AUSTRAL NEW ZEALAND Austral New Zealand Mining, Ltd., in the second report covering the period from June 30, 1937, to December 31, 1937, says the dredge hull is expected to be completed and launched about the middle of August. The whole of the dredge superstructure and parts of the machinery are at the site and assembling of the superstructure in preparation for erection on the hull is proceeding. It is hoped that the dredge will be ready to operate about the end of April. 1939. "With almost every item necessary for the construction of the dredge there has been delay in delivery.” the report says, “and a serious excess on the cost estimated by the company’s consulting engineers. Messrs F. W. Payne and Son. London. This state of affairs has mostly been due to the world-wide rush for armaments and the consequent shortage of steel for industrial purposes. Manufacturers also have been in a position to exact high prices for many costly parts of the dredge equipment.

“The excess of cost over estimate has had the careful and anxious attention of the board, and satisfactory arrangements for finance have been made. This means that the company will be in debt at the commencement of operations, but it is expected that the debt will be quickly repaid, with the result that shareholders will have the full benefit of the to be secured from the extra ground mentioned below.

“It has been decided to make application to the Government for a special dredging claim continuing upstream from the upper boundary of the first claim, the area concerned being held at present under prospecting licence. Because of the great difficulty and cost of drilling in the river itself, this area is by no means fully tested, but such boring as has been done on the banks and on the islands in the stream indicates that it will be payable to dredge." Balance-sheet items reveal paid up capital ht £140,000. calls paid in advance £llO7, sundry creditors £275, and exchange reserve £ll7O, making a total of £142.553. The chief items on the assets side are mine property, £42.732, expenditure to date on dredge and plant, etc.. £30.609. expenditure to date on buildings £1920. general plant and equipment £832 preliminary and fl.tation expenses £772 development account £4675. Otago Central Power Board, deposit and interest. £4070, cash on deposit and call and interest £SO 7 H3. cash balances at bankers £6103.

MAORI GULLY

(PRESS ASSOCIATION TELEGRAM.) GREYMOUTH. July 29.. The Maori Gully dredge return is 230 z 6dwt for 190 hours. The ground being worked is very shallow and appears to have been previously land worked.