PERPETUAL FORESTS

Evening Post, Volume CXXV, Issue 58, 10 March 1938, Page 12

PERPETUAL FORESTS

BONDHOLDERS IN CONTROL

A general statement of the tentative agreement reached with the bondholders' company, New Zealand Forest Products, Limited, regarding the compounding of its contracts, was placed before a recent meeting of shareholders of New Zealand Perpetual Forests, The report points out that this stage marks, on the one hand, the substantial completion by the original comrjany, New Zealand Perpetual Forests, Limited, of the work for which it was primarily constituted, namely, the creation of the forest now covering 170,000 acres, and, on the other hand, the commencement of the activities of the bondholders' own company in the management. and realisation of its forest assets. While New Zealand Perpetual Forests, Limited, will continue in business to complete all outstanding transactions, the future activities of this company will be determined by the shareholders at a later date. A substantial portion of the bond-selling company's assets is represented by shares in New Zealand Forest Products, Limited, and its shareholders are thus directly interested in the successful outcome of the realisation of the forests. The' bondholders' company. New Zealand Forest Products, Limited, was formed about two years ago under special legislation for the more effective establishment and control of the industries for the realisation of the forests. Under the proposed agreement, which now requires the approval of the Bondholders' Incorporation Commission before becoming operative, New Zealand Forest Products, Limited, the bondholders' company, will take over the care, maintenance, and realisation/of the forests, together with a large sum of money for that purpose. . • '