Capital dividend in doubt

Press, 29 October 1977, Page 21

Capital dividend in doubt

PA Nelson The unsecured creditors of Capital Air Services, Ltd, might receive 15c in the dollar despite the fact that insufficient support for the offer was received at a meeting of creditors. The offer was described as “first and final.” The meeting voted 35 to 20 ($175,489 to $139,053) in favour of accepting the offer, but this fell short of the required 75 per cent supp.orting-vote required. However, Capital's receiver (Mr W. J. L Cowan) said that some of the creditors may not have been entitled to vote. “We had to take the votes of these people because we

didn’t know whether they were eligible or not.” After “some research” he will submit to the Supreme Court in Hamilton his case for or against the inclusion of some votes. No date has yet been set for the court hearing. “There may be some creditors in a special position,” Mr Cowan said. One creditor ‘ claims their debt was guaranteed byJames Aviation, Ltd. the Hamilton aero firm which is managing Capital on behalf of the receiver, James Aviation is also an unsecured creditor and it voted at the meeting, when it might not have been entitled to do so, Mr Lowan said.