SUGAR OF MILK CO.'S AFFAIRS

Evening Post, Volume CXI, Issue 92, 20 April 1931, Page 10

SUGAR OF MILK CO.'S AFFAIRS

The directors of the New Zealand Sugar of Milk and Casein Company, Ltd., have issued a circular letter to shareholders, calling a meeting of preference . shareholders. The letter' states:— "The directors regret'that the prospects of the company have not improved since they reported to you in their circular of 20th October, 1930. A critical position has now arisen and makes it necessary to call the preference shareholders together." ' Keference is made to the bank overdraft of £40,000, and the refusal of the bank ■to provide further accommodatiort; also to the personal guarantee of £30,000 bySir Ernest Debenham, and advances made by him. Sir Ernest has declined to make further advances, a.nd has cabled suggesting an increase in the capital to be-Subscribed by preference shaveholders. The directors explain that the proposed meeting: of preference shareholders would not be a meeting of the company,., "but a. meeting called to-lay the position in detail before preference shareholders with n view lo ascertaining whether any such shareholders desire to subscribe for 5000 further preference shares on the lined suggested by Sir Ernest Debenhaim If it is'ciear that further finance can be obtained in this way, the necessary sleps to create and issue the shares would then '.be taken."