COMPANY'S TROUBLES

Taranaki Daily News, 3 December 1930, Page 9

COMPANY'S TROUBLES

SYDNEY ESTATE AGENTS. PROPOSED’LIQUIDATION. It was announced in Sydney on November 14 by the directors of Arthur Rickard and Company, Limited, city real estate agents, that » meeting of shareholders would shortly be called to put the company into voluntary liquidation. The holding company, known as Arthur Rickard and Company, Extended, Limited? will also bp put into liquidation. It was stated that this action^was being taken as a result of difliqultTes arising put of the general financial depression. ' The following statement was, issued by the directors:—- ' “The past experience of the company has amply demonstrated thg splendid record of buyer# in standing up to their, obligations and; acquiring titles to their holdings, but, unfortunately, so many of them have been victims of unemployment and depression that the income usually flowing regularly from this source has temporarily been largely diminished, this being the direct reason for immediate action being necessary. The company, and subsidiary companies under its control, have op their books nearly £500,000 buyers’ balances owing, on .land sold, ' >i “On account of - the extended terms of credit granted to its purchasers, the company’ has found it necessary from time to time to give mortgages’to fin-, ance jts operations. For some months past, as these became due, it was found impossible to renew them, apd it is equally impossible to borrow ip any other quarter, as mortgage money is practically unobtainable ip Sydney today, and other financial resources have been abated for similar reasons, .Under normal conditions these mortgages could have beep renewed or the money could have beep obtained from other lenders.

“The position was recently put before the shareholders and they were invited to subscribe to ap issue of debentures. The shareholders did pot respond to sufficient extent io warrant the directors accepting any of th© subgerip.tions, The cash position has therefore resulted in a stoppage of payment, although the surplus assets of the cpinpany amount to more than £600,000 over and above its liabilities, - “Practically the whole of the creditors are secured,, and there is no likelihood that any loss can ie made by them. The position of the land buyers will not in any way -be prejudiced by liquidation, as care has been taken to protect their interests. Titles will be available on completion of payments due under the various contracts.

“The hiding company, known as Ar? thur Rjpkard and Company, Extended) Limited (which, ip addition to holding all the shares in the operating, company, Arthur Rickard and Company, Limited, also hold practically the whole of the shares in the Haymarket. , Land and Building Company, Limited, and the Northern Suburbs Building and Investment Company, Limited), will also he put into liquidation. “The paid-up capital of Arthur Rickard and Company, Extended,'. Limited, is represented by £400,000 ip preference shares, and £250,000 in ordinary shares, a total of £650,000, and reserves at the date of last balance-sheet were £40,000, “The Hayjnarket Land and Building Company, Limited, will not be affected ■by the liquidation, and will continue a? at present. This also applies to the Northern Suburbs Building" and Investment Company, Limited.’’ - -Six other subsidiary companies,. with paid-up capital totalling £13'5,130, in which Arthur Rickard and CompanyLimited, holds either the whole or a' large proportion of the shares, wijl not be affected by the liquidation, and will continue to carry on business.. Interviewed in regard to the proposed liquidation, Sir Arthur Richard, chairman of directors of all the companies named, said;—“The position is rather extraordinary in view of the huge surplus which the balance-sheet of Arthur Rickard and Company, Extended, Limited, shows. The assets in normal times could be regarded as certain to realise the book value. It is difficult, however, at present, to state what assets, such as land and land buyers’ balances, will ultimately realise. I and my', family hold about 80,000 preference shares, apd 230,000 ordinary shares, nearly half the paid-up capital. Unfortunately, my own personal position is threatened, as I am joined personally in the covenants of mortgages, and have guaranteed various sums aggregating a very large