THE N.Z. AND M.A. COMPANY.

Otago Witness, Issue 2258, 10 June 1897, Page 17

THE N.Z. AND M.A. COMPANY.

NO CALL REQUIRED. ; London, June 5. : The committee of " A " and " B " debenture-, holders in the New Zealand Loan and Mercantile Agency Company have recommended a scheme for the 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 j interest and assets. A meeting to consider the scheme will be held on June 16. Later. The New Zealand Loan and Mercantile Agency Company's readjustment is on the following lines : — Prior lien debentures to remain untouched. "A " debentures to receive 70 pec cent, of the present stock in new 4 per cent, debentures, on 40 par cant, of which the interest is a fixed charge. Ten thousand preference pound shares will be issued to trustees, who will issue against these ona million certificates, of which 30 per cent, each go to " A " and " B " debentureholders, 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 L 145.000 to L 104.000, cancels L 2.500.000 worth, of debentures and shares to provide for deficiencies and readjust the capital account hereafter, the capital amount of L 3,311,320 paid share capital being written down to L 1.383,750. The uncalled capital remains liable to a call, but the directors are of opinion the scheme removes all possibility of a call. Melbourne, June 7. | Mr David Elder, Melbourne manager of the New Zealand Loan and Mercantile Agency Company, states that the negotiations that are taking plaoe in Great Britain do not affect the company's business in the colonies. Mr Elder explains that the New Zealand

Loan and Maicantile Agenoy Company's business in the colonies is carried on by means of Trust accounts specially provided for in the memoranda of association. With regard to the L 2,500,000 worth ©f debentures and shares cancelled, he says a million of this will ultimately accrue to the benefit of thoso interested by meano of certificates for the million held by trustees against the new preference shares, should a recovery in the present realisable value of pastoral securities take place, and interest will be paid thereon in the meantime if earned by the company.