N.Z.L. AND M.A. COMPANY.

Otago Witness, Issue 2056, 20 July 1893, Page 16

N.Z.L. AND M.A. COMPANY.

(Pbb Press Association.)

London, July 11.

The management of the New Zealand Loan and Mercantile Agency Company are applying to the court for a protection order. The New Zealand Loan and Mercantile Agency Company's shares have fallen L 3 103, and their debentures are quoted at LBO to LBS.

The directors of the New Zealand Loan and Mercantile Agency Company are discussing the advisability of making a call of L 3 per share and asking bondholders to renew their debentures.

The company owe 3 the Bank of New Zealand under L 25.000, for which the bank holds securities of an easily realisable character equal to L 500.000.

July 12.

No scheme for a reconstruction has yet been arranged, but the directors of the Loan and Mercantile Agency Company are sanguine they will get through the task quickly. The debenture-holders in the New Zealand Loan and Mercantile Agency Company are applying to the court to protect the assets, and ask that debentures amounting to L 1,300,000, 300,000 should be a first charge on the assets, including L 550.000 financed by Baron Schroeder.

July 14.

The Times states that the failure of the Loan and Mercantile Agency has produced little or no effect on the wealthy shareholders, who are not likely to allow the company to collapse. Owing to recent failmes, the Assets Company cabled to the colony on May 6 to postpone the October issue, although fully underwritten. The Loan and Mercantile Agency Company's debentures have fallen 2£. July 14. Mr Alexander Toung has been appointed official receiver in connection with the suspension pending reconstruction of the New Zealand Loan and Mercantile Agency Company. A petition to wind up tbe New Zealand Loan and Mercantile Agency Company will be heard on the 21st insfc. Melbouene, July 13. The general manager of the Loan and Mercantile Agency Company has received a oable message from London announcing that the directors have issued a circular stating that all the necessary measures have been 'taken for the protection of the company's property and maintenance of its connection. The scheme for the reconstruction of the business is in course of preparation and will be submitted to share and debenture-holders at the earliest date possible. Measures are being taken to preserve, for the benefit of all concerned, the the valuable business that for some years has been carried on with so much success. Arrangements have been made for the payment of all outstanding cheques of the company in New Zealand. Pending reconstruction the Australian commission and agency business of the company will be conducted by the New Zealand Land Association, and similar arrangements will be made for New Zealand.

Sydney, July 12.

Commenting on the suspension of the New Zealand Loan and Mercantile Agency Company, the Sydney Morning Herald says it is unfortunate that New Zealand, which, as a result of sound economical conditions, came unscathed through the recent financial troubles, should now be made to share in them, partly by business connections and to some extent apparently through the accident of name.

Auckland, July 12. Mr Button, solicitor (instructed by Mr Battley, general manager of the New Zealand Loan and Mercantile Agency Company), took the necessary steps to-day to obtain an order from the Supreme Court protecting the company's assets and all other interests involved pending the reconstruction scheme, which it is expected will soon be placed before shareholders and debenture-holders. The general manager of the Loan and/Mercantile Agency Company received information yesterday from Melbourne stating that the necessary steps to protect the assets and to inaugurate the proceedings necessary for reconstruction had been taken. The general manager has telegraphed to branch offices instructing them as to measures required to preserve' the business of the company. Wellington, July 12. Telegrams received in Wellington from all over the colony state that though the suspension of the Loan and Mercantile Agency Company has naturally caused a good deal of talk, it has been taken very quietly.