LOSS ON DEBENTURES.

New Zealand Herald, Volume LXIX, Issue 21133, 16 March 1932, Page 12

LOSS ON DEBENTURES.

RUGBY UNION GROUND. HOLDERS ACCEPT OFFER. [BT TELKGRATH. —OWN CORnESrONJDENT.] DAEGAVILLF-, Tuesday. Twenty-five holders of debentures in Rugby Park, the Northern Wairoa Rugby Union's ground, were present at a meeting at which tho chairman of the union, Mr. l'\ Clendon Gould, reported that, following a visit by Mr. S. S. Dean, the New Zealand Rugby Union had agreed to advance a loan of £IOOO as a first charge on (ho land. The amount owing under thp debentures totalled £1425, and tho interest £l3O. If the offer was accepted the debenture-holders would lose about one-third of I heir money. Under Ihe New Zealand Union's offer tho rale of interest was 5 per cent., with a sinking fund of 1 per cent. The matter was discussed at length and it was finally decided to accept the offer. Overdue interest, will bo paid out of tho £IOOO, and the balance distributed as capital. Mr. Gould explained that the money would not be available immediately, tho loan depending on tho North Auckland Rugby Union, which was to guarantee it. That ground, which allows for three full playing areas, and the appointments originally cost about £3OOO, and last year was the first time the debenture-holders had not received any interest. Under the new conditions the union will save about £SO in interest yearly.