COURT MOVE ON KAURI

Press, Volume CII, Issue 30028, 12 January 1963, Page 14

COURT MOVE ON KAURI

Meetings Must Be Held

(N.Z.P.A.-Reuter~Copyright) MELBOURNE, January 10. Four separate meetings of shareholders and unsecured note holders in the Kauri Timber Company, Ltd., to consider a scheme of arrangement were ordered today by Mr Justice Jillard in the Melbourne Practice Court. The meetings have been set down for Wednesday, February 20. The company secretary (Mr L A Rogers) in an affidavit to the court said the company might not be able to pay interest to note-holders unless the scheme of arrangement was approved by shareholders and unsecured noteholders. This could lead to the trustees taking action “to dispose of valuable assets at sacrificial prices,” he said. His affidavit also said adoption of the scheme was urgent because the company had disposed of six subsidiaries in the Mount Gambier area of South Australia under certain conditions and negotiations were proceeding for the underwriting of new capital.

£707,713 Loss In December the directors of the company reported a loss of £707,713 by the company and its subsidiaries. Mr Rogers said that even if the rate of the company’s losses diminished, it would have difficulty in regard to notes and other fixed-term borrowing. Under the scheme of arrangement unprofitable activities would be disposed of. A new bolding company would be formed if the scheme of arrangement were accepted, with shareholders transferring shares. There would also be the underwriting of £ 1.25 m in new capital.

The Judge ordered today that the results of the separate meetings be reported to the court.