Govt guarantee on Matai overdraft

Press, Volume CXIV, Issue 33477, 7 March 1974, Page 1

Govt guarantee on Matai overdraft

(Nciv Zealand Press Association i WELLINGTON, March 6. i l he Government has guaranteed bank overdraft finance to the manager-receiver of Matai Industries. Ltd. lor his immediate work in putting Matai on a sound footing.

This was announced this evening by the Minister of Trade and Industry (Mr Freer) in a brief statement. The move was intended to allow the company to press ahead while a full evaluation was made by the managerreceiver (Mr k. J. Jensen). Today’s announcement came after talks between Mr Freer and the Minister of

Finance (Mr Rowling) on an interim report on Matai received yesterday from Mr Jensen. “AS RECOMMENDED” Mr Freer declined to state the amount of the overdraft, but said it was the size recommended by Mr Jensen in his report. It was an interim guarantee by the Government and “there could be the possi bility of further assistance." Asked if Matai had re-

-quested regional development subsidies. Mr Freer ■■aid his departmental officers might have this by now. but ii bad not reached his desk, and he did not expect to receive it for at least a week The Minister said he did not know when he could re ceive another report from Mr Jensen, but today’s action was in line with what had been expected when Mr Jensen was appointed. “We put him in to ensure continuity of the company.” said Mr Freer. “He has made a request for bridging finance, and we have met it." The Development Finance [Corporation has been asked to provide a Greymouth firm with "suspensory loan mcen | live on machinery and financial support." The recommendation came from the West Coast Regional Development Council, according to a statement by the council today. The assistance would be subject to an assurance from

the company’s officers on aspects of future activities affecting the security of the investment and protection of the public. The council also decided to [support the application for [a suspensory loan for equipment for the proposed Mt export packing plant of the regional abattoir complex