OFFER BY BANK.

Taranaki Daily News, 18 June 1925, Page 8

OFFER BY BANK.

FARMERS 1 MEAT COMPANY. i PAYMENT OF CALL OF £3, ! £1 53 PER SHARE REFUND. An “act of grace” offer to settle the action between the 112 shareholders in the Taranaki Farmers’ Meat Company, Ltd. (in liquidation) and the company has 'been made iby the Bank of New Zealand on the basis of a refund of 25s per share if the shareholders will pay the calls on their shares. The concession has been made to those preference shareholders who have been placed on the list of contributories, and a special circular has been sent to the 112 extending the concession to them, provided they agree to allow their names to be put on the list of contributories. Negotiations have been in progress for some time and the offer of the bank is the outcome.

The circular which has been issued by the receiver for the debenture-holders (Mr. Thos. McLaren) states: “The Bank of New Zealand is making ex gratia a certain concession jo those holders of preference shares who have now been placed on the settled list of contributories, subject to certain conditions being complied with I am authorised by the bank to state that in the event of your definitely agreeing with the liquidator on or before the 24th day of June, 1925, that your name shall be placed upon the settled list of contributories in respect of the number of preference shares standing in your name, the same concession is open for your acceptance, subject to the conditions thereof. You must clearly understand, however, that if you elect to await the decision of the present legal proceedings, the bank, in the event of such proceedings Hieing unsuccessful from the shareholders point of view, cannot be expected to make the concession which is now offered.”

The details of the concession are set out in a further circular as under:— The Bank of New Zealand holds security over the unpaid capital due on the preference shares, and is entitled to require payment of the whole of the call of £3 per share now made by the liquidator in respect of such shares. “I am requested to advise you personally, however, that the directors and general manager of the bank are very desirous to show the shareholders who are prepared to meet their responsibilities, as much consideration as possible. With this in view and in order to expedite the completion of the liquidation of the company’s affairs, they desire me to inform you that, notwithstanding the heavy losses which have aheady been made by the bank in connection with the company and writteen oil, and the further loss which this concession will involve, the bank will ex gratia pay the sum of '2ss per share to those contributories:— 1. Who on or before the 24th day of July, 1925, pay up the arrears (if any) of calls made Iby the company’s directors; and 2. Who on or before that date either pay in full to the liquidator the amount of the call now made by him, or arrange to his satisfaction for the payment of such call, and punctually carry out such arrangement. “This sum of 25s per share will be paid by the 'bank to each contributory on receipt by me, as receiver for the bank, from the liquidator of the moneys payable by each contributory in respect of calls already made and unpaid and the liquidator’s call, and will ibe purely a voluntary payment on the part of the bank.

“The effect of this offer is that although each contributory who accepts it will pay up £3 (the amount of the liquidator’s call) in respect of each preference share held by him, he will receive back from the 'bank the sum of 25s per share for each £3 of the present call so paid.” A Daily News reporter was informed last night that the investigation committee representative of shareholders involved m the present legal proceedings will meet to consider the bank’s offer and an announcement will be made, shortly.