Proposal To Keep Stanhill Going

Press, Volume CIII, Issue 30610, 28 November 1964, Page 15

Proposal To Keep Stanhill Going

(N Z.P.A.-Reuter-—Copy right)

MELBOURNE, November 26

The annual meeting of shareholders of the Stanhill Development Finance, Ltd. (receiver appointed), today voted to oppose a petition to wind up the company. The meeting supported a move for the company to stay in business.

Four of the 73 shareholders at the meeting voted against the motions.

The receiver (Mr R. F. Hughes) told shareholders none of the money under his control would be used to fight the proposed petition. Directors presented a plan which they called a “scheme of reconstruction and arrangement.”

It involves: The writing down of paid capital from £750,001 to £75,000; Noteholders and unsecured creditors to take £22 10s for each £lOO of their debts, to be made up of £l5 cash and £7 10s in shares in the company;

The obtaining in cash of at least £400,000 in share capital and 8 per cent loan funds, which would be underwritten: A supervisory committee comprising two representatives of noteholders and one of shareholders. A shareholder asked Mr Hughes for his views on the plan. Mr Hughes said at present there was no plan as such. The plan presented at the meeting set out details of the last draft considered at a meeting of the trustee for the noteholders, directors and himself. But he doubted if he could ever offer an opinion on such a scheme unless more detail was available. "At this stage I am neither for nor against the scheme,”

Mr Hughes said.

He was not at the meeting to address shareholders, but would speak to noteholders at a properly constituted meeting, he said. If proposals were put to the Supreme Court for reconstruction of the company, and a court order was given for a meeting of noteholders he would express an opinion then.