N.Z.L. & M.A. Co.

Pahiatua Herald, Volume II, Issue 100, 17 January 1894, Page 2

N.Z.L. & M.A. Co.

The Reconstruction Scheme. Is it Reconstruction or Liquidation?

| (By Electric Telegraph—Copyright.l (Fee Press Association.) Deceived 11.30 a.m. Melbourne, This Day. Thu reconstruction scheme of the New Zealand Loan and Mercantile Agency Company provides for a new company under the same title with a capital of *2,900,000 in 82,000 ordinary shares of £lO each, and 200,000 five per cent preference shares of £8 10s each. The liability of £22 10s per share on shares in the old company to be immediately called up, but holders relieved of this liability on taking for each old share two ordinary shares and one preference share in the new company, paying £1 for ordinary and £3 10s for preference shares by i instalments extending over 15 months for ordinary and two years for preference shares. Three new issues of debenture stock will be created, viz., prior lien and “ A” and “B” prior lieu bearing interest at 5 percent and others arc free, but interest on “A” deben tures is only payable from profit while prior lien stocks remain in existence. Holde rs of Baron Schroeder's 1 per cent receive prior lien stock £ for £ of amount of their holdings. Holders of debentures issued prior to Baron Schroeder’s stock are to In paid ■SO per cent, in “A ” and 50 per cent in “B” st<»ck with accrued interest. Baron Schroeder’s stock to March 30th to he paid in cash, while that on debenture s issued previously to be paid in prior lien de*bentures. Holders of securities guaranteed bv the-old company to In* paid in “ A " and “ B " stock, creditors under £2O to Ik* paid in cash. Pn seen rod creditors are to capitalise the* interest clue to them to 81st March anel to is- paid in cash /xu i /m.ssn with calls to the extent of 12A pe r cent. Unpaid instalments carrying interest at 10 per ce*nt to be paid in prior le*in and 50 per cent equally in “ A ” and “ B " stock. The* new company reserves powers to redeem the* charges upon any specified asset. If the-liquidation and trustees for debenture holders approve, the moneys received on realization of the property to lie applied three-fourths to the redemption of debenture stock and the balance provides for additional working capital. Underlying the principle of the scheme is the consolidation of all liability into debenture stock, thus leaving the Company free from debt.