Judge Corp meets creditors, ‘others’

Press, 2 December 1987, Page 41

Judge Corp meets creditors, ‘others’

PA Wellington Judge Corp, Ltd, is involved with its secured creditors, major unsecured creditors, and other parties, the company announced yesterday. In a statement, Mr T. A. Coull, the company secretary, said this was in an attempt to put the company in a solvent position. Judge’s liabilities still exceeded its assets, the company said in a statement today.

After recommendations from the task force which was advising the company, Judge Corporation was conducting urgent discussions with its creditors.

But, because the discussions were of “extreme commercial sensitivity, ” it would be inappropriate for the directors to make further comment.

Judge Corp shares closed at 4c today, after

slumping another sc. They sold as high as $9.80 last year shortly after listing.

In Brisbane, Ariadne Australia’s executive chairman, Mr Bruce Judge, has revealed the two new key players in the embattled company — Mr Larry Adler and Mr Kerry Packer — want him to stay at the helm. “Clearly there are moves to keep me,” Mr Judge told AAP. Mr Judge has substantially watered down his Ariadne holding to about 4 per cent through a deal that gives a consortium headed by Packer companies 18.7 per cent of the company. Asked about his position as executive chairman, Mr Judge said: “The underwriters have told me they would not be as interested without me.” Mr Adler’s Pembroke Securities has agreed to underwrite a $l2O million one-for-two renounceable

rights issue. Mr Adler, who is the chairman of FAI Insurances, last week paid $3.7M to pick up about 1.5 per cent of Ariadne’s issued capital.

Discussions had also been held with the Packer consortium about Mr Judge’s future. Mr Judge reiterated his position with the company would not be discussed at board level until next year, and after the appointment of a chief executive officer in late January. Mr Judge, whose Australian and New Zealand comanies and their associates were among the hardest hit in the sharemarket crash, said the last few weeks had been very busy.

“I would love to have a break at the moment but that is not possible,” he said.

“I will be going to Europe next April and May to spend some time with my son.”

He declined to comment on statements yesterday by National Companies and Securities Commission (NCSC) chairman, Mr Henry Bosch, that the corporate watchdog had “closed the book” on Ariadne. Mr Bosch said: “,i.. We were concerned about certain failures to inform the market of certain matters that occurred earlier last year and as a result of us bringing to the company’s attention our concerns ... the company decided that the best course would be for him (Mr Judge) to go.” An audit by Arthur Andersen and Company would give further information to the market, he said. "As far as we are concerned the statement that the company has made now closes the book and nothing that we are aware of in the past will be raised again by the commission.”