Rehabilitating Enzlon

Press, Volume CVI, Issue 31134, 10 August 1966, Page 1

Rehabilitating Enzlon

(A>tr Zealand Press Association)

WELLINGTON, August 9. Another step toward the rehabilitation of Enzlon Chemical Fibres, Ltd., was taken today.

A meeting of debenture stockholders in Wellington agreed to prepare for the formation of a new company to acquire the Shannon nylon spinning industry. This is in accordance with the decision of the previous debenture stockholders’ meeting.

The meeting was told that negotiations were still proceeding with a foreign company interested in acquiring not less than 51 per cent holding in the new company. The trustee for the debenture stockholders, National Mutual Nominees, Ltd., gave further recommendations of the committee of major debenture stockholders. Trust Amendment In the light of these recommendations, the meeting agreed to an amendment of the trust deed whereby debenture stockholders could

decide on the basis of an extraordinary resolution that they accept shares in place of their debenture stock. The meeting decided also that the trustee should empower the receiver in charge of Enzlon Chemical Fibres, Ltd., to enter into an agreement with the new company to be formed to its having a capital of not less than £500.000 when the receiver signed, provided that I not less than £250.000 had ibeen subscribed in cash. The meeting was private and not open to the press but a statement was issued after it. It was attended by 72 persons, who represented £434,500 of the £750,000 debenture stock.