DEBENTURE ISSUE

Dominion, Volume 27, Issue 37, 7 November 1933, Page 10

DEBENTURE ISSUE

Renown Collieries Limited DETAILS EXPLAINED Dominion Special Service. Auckland, November 6. Details of the debenture issue proposed by Renown Collieries Limited are given in a circular to shareholders. The directors have decided to offer to shareholders in the first instance debentures to the value of £30,000 having a currency of 20 years and bearing interest at 61 per cent. The debentures will be in denominations of £25, and the directors reserve the right, after five years, to redeem by ballot 20 per cent, annually. No allotment will be made until a minimum subscription of £15,000 is obtained. In order to provide for redemption on maturity and to strengthen the investment the directors intend to take out an endowment policy with an assurance company for the full amount of the issue. This will provide, by the payment of an annual premium, a sum sufficient to redeem the debentures at the end of the period. Failure to pay the premium will be equivalent to default in interest payments, enabling the debenture holders to take action. Security for the issue will be over the company’s assets, subject to the Tapp and Broughton leases and the Adit Limited security. The directors announce having completed very satisfactory arrangements for a reduction in royalty payments. The directors claim that the issue, if successful will enable the company to pay off the bank overdraft, be free of debt to outsiders, and have sufficient funds remaining to push on with the company’s programme. They state they are determined not to permit the company’s operations to be terminated without first exhausting every reasonable possibility of continuing.