LOAN & MERCANTILE CO.

Taranaki Daily News, Volume LV, Issue 279, 17 April 1913, Page 3

LOAN & MERCANTILE CO.

EFFECT OF RECONSTRUCTION SCHEME.

With the sanction given by Mr. Justice i Xe.ville, sitting in the Chancery Division, a few days ago (says the Stock Exchange Gazette, London, of February 27) to the legal details of the scheme, the reorganisation of the capital account of the' New Zealand Loan and Mercantile Agency Company will be completed at an early date. The net result is that instead of a prior lien debenture debt of £2,350,000, a second debenture debt of £540,000, and third debentures representing £405,000, together with £135,036 of ordinary capital, and an uncalled liability on the shareß of £1,706,000, the capital will now consist of £1,000,000 of prior lien debentures, £1,000,000 of second debentures, and £1,000,000 each of preference and ordinary stock. In order to carry out this re-arrangement it is necessary to call up a large amount of capital, but, on the other hand, a special cash bonus of 15s per 10s paid share has been announced to those shareholders who participate in the reconstruction scheme. The prosperity of this company during recent years has been steadily progressive, but, owing to the complicated state of its ; finances, it has been difficult for the general body of shareholders to appreciate the strength of its financial position. In future, however, there will be no complaint on this score; on the contrary, the directors should now be able to pay increased dividends, in view of the fact that there will no longer be any question of further participation by de-benture-holders in profits over and above their fixed rate of interest, this haying been the stumbling-block with which the board have hitherto been faced. The iiddition of the name of Mr. Alfred Shepherd to the list of directors is a satisfactory development, for this gentleman lias been associated for many years with Australasian land and mortgage concerns, and his experience in this connection is almost unrivalled. The latest advices from New Zealand report an ample rainfall and generally seasonable weather. The outlook for the next season is therefore very favorable.