PLANTED FLAX LANDS

Hawke's Bay Tribune, Volume XXIII, Issue 104, 13 April 1933, Page 5

PLANTED FLAX LANDS

CASE IN SYDNEY COURT. POSITION OK BONDHOLDERS. (Received 13, 10.10 a.m.) SYDNEY, April 13. The Equity Court bus been engaged on a number of questions arising from proceedings for the voluntary liquidation of Australian and New Zealand Investments, Limited, incorporated in 1927, with the main object of growing flax in New Zealand, for which three series of Hemp Land Bonds were issued to raise the necessary capital. lhe Court is now to determine the rights of the bondholders and de-benture-holders as to whether certain trusts are valid and whether the bonds or debentures have priority. The Court held that the bonds and deeds of trust were valid enforcible documents. Argument is proceeding on the question whether the contract between the company and the Public Trustee, acting for the bondholders, is capable of specific performance. Land has been bought and planted which the Court was informed was sufficient to satisfy the requirements of “A” and “B” bondholders, but there was a deficiency in the “C” area planted as the company had been unable to complete the purchase. “A” and “B’> land has been transferred to the Public Trustee. The vendor of “0” land had become repossessed of a part, including a portion that had been planted, but the time for the transfer of “0” land had not yet arrived.