Capital plan by A.O.D.

Press, 25 May 1977, Page 22

Capital plan by A.O.D.

NZPA Melbourne Alliance Oil Development Australia, N.L., plans to wipe out its sAustl3M in accumulated losses in a major capital reconstruction scheme. The company plans to issue one new fully-paid 20c share for each two fully-paid 50c shares.

Holders of 50c shares paid to 20c will receive one new fully-paid 20c share for each five of the partly-paid held. The company’s eight mil- ] lion 50c forfeited shares will be cancelled. Shareholders will be asked to approve the capital scheme on June 17. The directors said it was needed because the company’s SI3M in accumulated losses were considered to be pjent. This meant the amount of the company’s assets was not accurately represented by its capital. A.O.D.’s general manager (Mr Ted Garland) said the moves would place the company in a strong position for the future. He said the company “could well produce a profit” in 1977-78. The profit prediction was made with the provision that current negotiations with the Pipelines Authority of South Australia were satisfactory to the company. The reconstruction will raise the asset backing of the (company’s reduced shares (from 10.4 c to 19.4 c a share, 'the Minister of Agriculture, Mr Maclntyre.