Kearns transfers plant to NMA

Press, Volume CXII, Issue 33061, 31 October 1972, Page 21

Kearns transfers plant to NMA

Kearns Oatina, Ltd, Christchurch grain merchant and grain products manufacturer, has ceased trading, the chairman (Mr I. McW. Harkness) says in a letter to shareholders.

The directors have acted to preserve the company’s assets, and to convert surplus stock and plant to cash with the intention of reducing the company’s indebtedness as far as possible.

In accordance with the agreement recently ratified by shareholders, all plant and stock relating to this agreement have been transferred to the NMA Company of New Zealand, Ltd. “It is regrettable that steeply rising costs have forced this course of action upon the company and there

is no doubt that when accounts are taken out a very heavy loss on plant and on trading will be shown to have been incurred,” says Mr Harkness.

i “The overwhelming advan- : tage of the arrangement was, ; however, that by disposing of i the plant and stock to one : purchaser continuing out- ; goings of interest and wages were immediately reduced to

the minimum and the company’s buildings made available for storage or lease.” Mr Harkness says there would be very few buyers for the Kearns Oatina machinery and that the company was fortunate to conclude the arrangement, which had been the subject of “extremely protracted negotiations.’

With the illness of the manager of the malt extract division, the board has closed that division. Consideration will be given to resuming production if possible.