REORGANISATION OF CAPITAL.

Manawatu Standard, Volume LVII, Issue 306, 25 November 1937, Page 6

REORGANISATION OF CAPITAL.

N.Z. LOAN AND MERCANTILE AGENCY CO., LTD. LONDON, Nov. 23. The Court has sanctioned the capital scheme of the New Zealand Loan and Mercantile Agency Co., Ltd. Mr, Justice Simonds declared that tho scheme was based on the presumption that the English, Australian and .New Zealand currencies would continue at their present ratio. If they required parity then that would put tho company in a strong position. Counsel agreed, but he said the directors felt justified in carrying out the scheme in the circumstances. Mr Justice Simonds replied that, as the scheme was based on the adjustment necessitated by currency depreciation, he would confirm it. The New Zealand Loan and Mercantile Agency Co,, Ltd., has received cabled advice from its London office that on November 22 the Court sanctioned the scheme of arrangement approved at meetings of stockholders held in London on October 5. The scheme provides for (a) payment in full of all arrears of dividend (2jr years to Juno 30, 1930) on the 5 per cent, cumulative preference stock, together with dividend for year ended June 30, 1937; (b) the £500,000 of 6i per cent, cumulative second preference stock to be converted into ordinary stock, and all arrears of dividend (5i years to June 30, 1936), to be cancelled, the holders of this stock rece.ving in consideration thereof £70,000 cash and additional £250,000 ordinary stock; (o) ordinary stockholders to surrender onefourth of their existing holdings to provide the foregoing £250,000 ordinary stock for 6i per cent, preference stockholders, and a further one-fourth of their holdings to be cancelled, the present book value in currency of the company’s assets in Australia and New- Zealand being writ en down by a corresponding figure; (d) the capital of the company to be increased to its present amount of £2,500,000 by the creation of 250,000 new shares of £1 each, which will he available for issue as ordinary shares if and when required.