U.K. BANK BUYS INTO COX BROS.

Press, Volume CVI, Issue 31128, 3 August 1966, Page 21

U.K. BANK BUYS INTO COX BROS.

(N.Z. Press Association—Copyright;

MELBOURNE, August 2.

A world-wide merchant banking and commodity trading group in Britain will put 2m dollars into Cox Brothers (Australia), Ltd., retailer. The Bank of England has approved.

The British group will own 60 per cent of Cox Brothers after a writing down of existing share and debenture values.

The chairman of Cox Bros., Sir Frank Richardson, announced the new plan for the company today. Simultaneously, at the request of Cox Bros., a receivermanager to the company was appointed by the trustee for debenture holders to protect their interests.

This will also allow profitable trading to continue until the reconstruction scheme is adopted or an alternative considered.

The English group is Ralli Brothers (Bankers), Ltd. It is half owned by Drages, Ltd., a London investment company, which in turn is headed and half-owned by Sir Isaac Wolfsen. Sir Isaac Wolfsen is also chairman of Great Universal Stores (Gussies). Mr N. W. Buckley, of Cooper Brothers and Company, chartered accountants, was appointed by the trustee T. and G. Nominees Pty., Ltd. This was announced by the manager of T. and G. Nominees, Mr K. D. J. Coventry. Business As Usual Sir Frank Richardson said shoppers would find business as usual at the various stores and branches. The receivership meant freezing amounts due to unsecured creditors, but adoption of the plan would result in payment in full. The directors believe that all payments for goods and services supplied from today could be met on normal trading terms.

Meetings of debenture holders and shareholders will be called as soon as possible to consider the plan. If it is adopted and sanctioned by the Supreme Court, debenture interest for the half-year to July 31, at 7 per cent, will be paid within 14 days of court confirmation. Cox Finance Corporation is not involved.