WOOL FIRMS IN RECEIVERSHIP

Press, Volume CXIII, Issue 33383, 15 November 1973, Page 14

WOOL FIRMS IN RECEIVERSHIP

Three companies which have been associated as wool buyers, scourers, and exporters, operating mainly in the South Otago region, have been placed in receivership by the National Bank of New Zealand, Ltd, Christchurch.

The firms — International t Trade and Finance (Wool) ’ Company Ltd, New Zealand * Wool Scourers, Ltd, and -] Allied Wools (Otago), Ltd, — S have had Mr H. Beattie and Mr C. C. Maddren, Christ- f church partners in Barr Bur- v gess and Stewart, chartered t accountants, appointed as re- t ceiver-managers as from a October 24. s International Trade and c Finance (Wool) Company, the t marketing and administration company of the group, is re-1 gistered in Christchurch with t a nominal capital of $lO,OOO. a The directors are Messrs E. s O. Hunter (chairman and managing director), R. R. t Gray, and G. McNeill. t Allied Wools (Otago) Ltd, c was formed by a merger of I the old-established Grays s Wool and Skin Company, Ltd, t and Clutha Wool and Skin c Company, Ltd. The registered li capital of the company is r $20,000 and the directors are r Messrs R. R. Gray, T. Gray and E. O. Hunter. a New Zealand Scoured t

Wools, Ltd, has as director: Messrs R. R. Gray, E. 0 Hunter, G. McM. West, M T. Gilchrist and T. Graj The nominal capital i; $24,000. The firms purchased woo from farmers in south an< west Otago for processing a the plant at Milton, whicl has a capacity of 30,000 bale; a year. The wool was thet sold to New Zealand broker: or exported to clients in Bri tain, Germany and Japan. The combined turnover o the companies for the yea to June 30, 1973, was s2.Bm and 19,000 bales of wool wai scoured at the Milton plant Mr Beattie said yesterday that an effort to strengthei the group by the formatior of a new company, Woo Holdings, Ltd, with a wel spread shareholding, had no been completed at the timi of the receivership. Share holders of this company wil not be affected by tht receivership. He said that the companie: attributed their losses thought to be at leas

rs $250,000, to the substantial J. rise in the price of wool over 4. a year ago, and because of ly losses through currency is changes, including the revaluation of the New Zealand ol dollar. id The company had been unit able to fulfil forward orders :h without incurring substantial js losses on the purchase of m wool to meet these orders. rs A contributing factor, Mr i- Beattie added, was the delay in the installation of the of second line of scouring equipir ment at the Milton plant. n, On the basis of a yet inis complete appraisal of the ,t. companies’ positions, Mr iy Beattie said that if the assets in were sold, only secured m creditors’ liabilities could be ol met. 11 On November 7Mr Beattie it met about 260 farmer clients le of the companies at Milton, 8- Balclutha and Heriot. At 11 these meetings, Mr Beattie le said, farmers indicated that they would be prepared to is continue to sell their clips to s, the receiver-managers on st credit.