A DEBENTURE ISSUE

Evening Post, Volume CVI, Issue 106, 1 November 1923, Page 8

A DEBENTURE ISSUE

THE GOLDEN BAY CEMENT

COMPANY.

Mr. Justice MacGregor has given his reserved decision in the case of the Golden Bay Cement Company against Charles Prendega&t Knight and Charles M'Arthirr. The plaintiff company was formed in 1920 to purchase and 'take over the undertaking and assets of the Golden Bay Cement Works, Ltd., a company in course of voluntary liquidation. The defendants were the trustees for certain debenture-holders of the plaintiff company, and in the present procee3ings represented . the holders of a series of 25,000 debentures, originally issued by the Golden Bay Cement Works, Limited, but nw m process of being assumed or taken over by the plaintiff company. By the summons as originally framed, the Court was, asked to determine-a number of questions regarding the form and the contents of the debentures to be issued by the plaintiff company to replace the issue of £25,000 debentures. At the hearing, however, it was agreed that these questions should be narrowed down to one, which was thus formulated in writing by counsel : "Whether the holders of the issue of £25,000 debentures are entitled to require the company to issue debentures including a charge (inter alia) over the uncalled capital of the company, upon the surrender to the company of the first-mention-ed debentures." After reviewing the case at some length, his.. Honour said he would make an order "declaring that the holders of the £25,0C0 debentures were not entitled to require the plaintiff company to issue to them such debentures as mentioned above.

At the hearing, Mr. C." P. Skerrett, X..0. with, him Mr. R. Loughnan, appeared for the plaintiff company and Mr. M. Myers, X.0., with him Mr W E. Leicester, for the defendants.