Apprehension in Australia

Press, Volume CXIV, Issue 33655, 3 October 1974, Page 17

Apprehension in Australia

(New Zealand Press Association—Copyright) SYDNEY. Australian finance and property companies are waiting nervously for the full impact of the collapse of Cambridge Credit Corporation, Ltd, which will be felt as lenders realise that even debenture holders have little prospect of any immediate return of funds, the Australian “Financial Review” says.

For property companies the impact will be delayed, because the receiver (Mr C. H. R. Jackson) will first be concerned with establishing the position of the company in relation to its assets and liabilities, and then with establishing repayment priorities.

Mr Jackson was appointed by the trustee for the debenture holders, Permanent Nominees, Ltd. The company failed to make its $2.7m quarterly interest payment on its debentures and unsecured

notes on September 30 after efforts to raise cash by selling some of its land holdings were unsuccessful. Cambridge Credit’s public borrowings are made up of s9om in first mortgage debentures and s34m in unsecured notes.

Its $9.6m ordinary share capital is divided among 6,000 shareholders who will now forgo the final 7 per cent payment which was to have been made on October 31.

The Acting Federal Treasurer (Mr Hayden) has given no indication of help for

Cambridge Credit, but he said that the Government was ready to act if the general financial situation warranted it, the “Financial Review” says.

Donaghys’ dividend

Donaghys, Ltd, will pay an interim dividend of 5 per cent on November 8, ex dividend October 23.