LOAN AND MERCANTILE AGENCY COMPANY.

Lyttelton Times, Volume XCVII, Issue 11288, 7 June 1897, Page 5

LOAN AND MERCANTILE AGENCY COMPANY.

THE READJUSTMENT SCHEME. [Per Press Association. I LONDON, June 5. The New Zealand Loan and Mercantile Agency Company readjustment is on the following lines:—Prior lien debentures to remain untouched; “A” debentures to receive 70 per cent of the present stock in new 4 per cent debentures, on 40 per cent of which interest is a fixed charge; ten thousand preference pound shares to he issued to trustees who will issue against these a million certificates, of which 30 per cent each go to the A and B debenture-holders, one certificate to every ordinary fully paid-up share and one for every two preference shares. The scheme reduces the fixed yearly interest on debentures from £145,000 to £104,000, cancels two and a half millions’ worth of debentures and shares to provide deficiencies and readjust the capital account. Hereafter the capital amounts to £3,311,320, the paid share capital being written down to £138,375. Tbe uncalled capital remains liable to call, but the Directors are of opinion that the scheme removes all possibility of a call. The committee of A and B deben-ture-holders in the New Zealand Loan and Mercantile Agency Company have recommended the scheme for readjustment of the capital account. The Directors are of opinion that the scheme removes all possibility of a call, and puts the company in a thoroughly sound position, both as regards interest and assets. A meeting to consider the scheme will be held on June 16.