GARIBALDI GOLD DREDGING COMPANY.

Otago Witness, Issue 2545, 24 December 1902, Page 23

GARIBALDI GOLD DREDGING COMPANY.

| A meeting of debenture-holders in the Gari- I baldi Gold Dredging Company was held at ' Messrs Mitchell and Leslie's office on Friday j to consider the financial position. In the | absence of the trustees for the debenture- j holders Mr Crust vas voted to the chair. The secretary apologised fcr ' the absence of Mr Calvert (one of the trustees), who had been called away from, town at the last minute. The Secretary stated that up to the present the holders of about 740 debentures had signified their willingness to ta.ke up shares in a new company, while the holders of 60 debentures were to be regarded as doubtful. Mr Calvert wrote stating that under the scheme submitted to the previous meeting it (vould not be competent for a majority of debenture-holders to shut out any holder or to adept any scheme which would confiscate his ■security. It was, however, competent for the holders of four-fifths in value of the debentures to agrea to any modification of any of the rights of the whole of them. He did not think that a scheme which would compel a debentureholder to incur further liability would be a modification ; but, as it would be exceedingly | difficult, if not impossible, to effect a sale at a price -which would not involve a very serious los 3on the debenture-holders, the trustees •would be justified in allowing any persons who were prepared to come forward and find the money necessary to come in before the deben-ture-holders. If a majority of four-fifths in value of the debenture-holders it -would be competent to reconstruct and sell the undertaking to a new company, the present holders receiving paid-up shares in lieu of their debentures. He thought that the new capital might be issued with a preferential right to dividends and also in the event of liquidation. Mr Gillies stated that he had received a telegram from Mr M'Gregor to the effect that the investigations at the claim were finished on Thursday, and that the prospects were splendid, provided the claim were systematically worked. A lengthy conversational discussion followed, in the course of which the Secretary suggested ' that a circular be sent out -to debenture- | holders proposing that reconstruction should be effected on the basis of a capital of £3000, consisting of 4000 shares of 15s each ; 2500 fully paid-up shares to be given to the deben-ture-holders in lieu of their debentures, 1250 preference shares to be issued, carrying preferential dividends to .the extent of 15s per share, and afterwards to rank as ordinary I shares ; 1000 of these preference shares to be | offered to the debenture-holders and 250 to I the company's creditors, and the balance of 250 i [ sjJAltt ift Ikififfei^ t$ the old-shareholdejg^. J

On the motion of Mr Gillies, seconded by 'Mr -H. Stokes, it was decided that it be a suggestion to the trustees to get the scheme formulated by the secretary printed and sent to debenture-holders, leaving the last 250 shares to be dealt with as thought fit, and also that the trustees call a meeting for not later than January 9. A^vote of thanks to the chair brougSt the proceedings to a close.