COMPANY’S FUTURE

Dominion, Volume 28, Issue 33, 2 November 1934, Page 11

COMPANY’S FUTURE

Royal Mail Steam Packet PLANS OF SYNDICATE (Received November 1, 10.55 p.m.) London, November 1. The city editor of the “Dally Express” says that a syndicate with influential financial backing, and acting with the approval of the Treasurv, is proposing to bid for the Royal Mail Steam Packet assets. It Is understood that foreign shipping interests are already considering the purchase of some of the companies of the group. The syndicate believes that indiscriminate liquidation of the Royal Mail group would be a national tragedy. It proposes to arrange repayment of Royal Mail Steam Packet first debentures, and offer second debenture-hold-ers part debentures and part shares in the new company.

At a meeting of the Royal Mail Steam Packet Company on October 17, Sir Arthur Maxwell, who presided, said that the moratorium granted by the company’s directors ended on December 31. The directors were unable to make a definite statement about the position arising then, but the prospect of evolving a scheme was remote, and it might be necessary very shortly to consider tho wltldihg-up cf the company. The Royal Mail Steam Packet’s annual report stated that the deficiency account of £9,011,302 in 1932 had increased by the end of 1933 to £11.303,111.