Renouf expects Impala funds

Press, 1 December 1988, Page 25

Renouf expects Impala funds

PA Auckland Renouf Corp expects to recover significant funds from Impala Pacific, shareholders were told at the annual meeting in Auckland yesterday. “After negotiations with the board of Impala Pacific, agreement in principle had been reached on a scheme of privatisation which, when completed, would result in a significant recovery of funds by the corporation,” the managing director, Andrew Strange, said. In Renouf’s June 30 annual account the investment in Impala Pacific and loans to the company were written down to nil. Mr Strange said the write-down was. made because the company had not produced accounts in the last year. He said Impala had sold significant manufacturing interests and he believed it had positive shareholders’ funds. Renouf had also made advances to Benequity Properties. That company’s property portfolio was being liquidated with the objective of advances being repaid as soon as possible. The meeting was attended by several hundred shareholders who repeatedly

questioned directors about why they should accept the company’s tagged accounts. In the year ended June 30 the company reported a $4Ol million bottom-line loss. After several requests by shareholders, founder and director, Sir Francis Renouf, explained how the tie-up between his company and Judge-related companies had contributed to the loss. He said during the bull run he had agreed with Bruce Judge to form a merger which would focus on extension in Europe. But later he had personality conflicts with Mr Judge, and, before the sell-out of Mr Judge’s interests in Renouf, the sharemarket crash struck. Renouf Corp was left with a number of uncompleted deals with Judge-related companies as share prices plunged. Renouf was now a residual industrial company with a New Zealand property company, Renouf Properties, and a halfowned Los Angeles property company. Mr Strange said the 20 or so industrial businesses would return in the company’s restructuring. At the meeting Sir Francis was reelected as director.