Marlborough skifield issue

Press, 10 December 1983, Page 25

Marlborough skifield issue

PA Blenheim Rainbow Ski Field Developments, Ltd, will make a $250,000 public share issue in the next two weeks, but it will not be seeking stock exchange listing.

The announcement of the issue comes after a meeting of company shareholders, and secured and unsecured creditors, in Blenheim on Thursday. The meeting unanimously adopted a “scheme of arrangement” which was drawn up to outline the proposed method of paying the company’s debts, a company spokesman said. The first step in the scheme is the public share issue, which the company hopes will raise enough funds to carry out essential works on the Rainbow skifield and ensure a season next year. The share issue would hopefully enable Rainbow to meet its present accounts and do roading and skifield work to carry forward for the next season. The shares would be available within the next two weeks, and would be sold in $lOO lots, the spokesman said.

Rainbow has already paid off some of its minor creditors, but still has debts of about $lOO,OOO. When it

called its first meeting of creditors' in April this year its outstanding commitments totalled $144,000. At that time all unsecured creditors owed more than $350 agreed to freeze their accounts as at April 30, and those owed $350 or less were to be paid.

Those accounts were settled, and in addition other creditors were paid 25c in the dollar owing by the end of May this year. The creditors agreed at the time to take no further steps to recover outstanding moneys until the end of February next year. The latter proposal was subject to the company raising a further $62,500 through share capital and obtaining a similar amount as an unsecured advance from the Development Finance Corporation, which it did. Under the “scheme of agreement” creditors have agreed to freeze the remaining outstanding debts as at the end of April this year, and receive further payments on the debts in February, April, and August next year. In addition the creditors are to receive some repayment in the form of shares, and to write off the final outstanding 30c in the dollar.