N.Z.L. AND M.A COMPANY.

Wanganui Herald, Volume XXVIII, Issue 8370, 10 January 1894, Page 2

N.Z.L. AND M.A COMPANY.

Particulars of the Reconstruction

Scheme.

(By Electric Telegraph — Copyright.) (Per United Press Association.)

London, January 9.

At tho statutory meeting of the Now Zealand Loan and Mercantile Aeenoy Company to-day, the Creditors' Committee reported that powerful counsel was of opinion that the old debenture holders were not secured. Mr Browne, tho committee's solicitor, strongly condemned tho manner of issuing 1892 stock, and accused the management o£ issuing misleading circulars. The Committee aro not in favor of litigation in the matter. Sir James Fergusson defended the directors and justified their action. The meeting was noisy, and Sir J. Fergussou was subjeoted to considerable interruption while explaining. The action of the directors was adjourned until the re-coastruc-tion scheme has been issued to the »harcholders.

In view of the necessarily brief and vague cablegram published by ua (New Zealand Herald) on Saturday, in reference to the reconstruction scheme of the Loan and Mercantile Agency, one of our representatives mode inquiries at the head offices of the company. Tho scheme is not, he learned, in itß entirety in the colony, but sufficient ia known of it that the following may ba taken aa correct : — The winding up of the old company will first bo undertaken, and the shareholders J will receive notice of their liability of the £22 10s unpaid- up per share, They will at tho same time, however, havo the choice given them — instead of paying this £22 10s — of taking up shares in the new company, a fortnight being given them in which to make up their minds. Ifc is of coui'BO necessary that a limit Bhould bo imposed, otherwise their would be no finality. , To such as so elect to take up shares in the new company -and it '» expected all will — they will be able to do ao as follows : Two £10 shares and one £3 10s preference Biiaro for each share ia the old company. To assist shareholders in meeting this demand £1 on each, new ordinary share (as distinct from the preference ohare) only will rank as ordinary calls, and for the remaining £3 10s a preference nharo will be issued, this preference share having a first claim on the net profits available for dividend. These latter shares, being fully paid up, ( it is expected would be immediately negotiated at par. With regard to the capital paid up in tho old company, amounting to £2 10s a share, the scheme will provide for writing off £1 10s of this, and crediting holders with 103 paid up on each ordinary share, thus accounting for the remaining £1 on the existing ordinary shares. Thns the ordinary shares in the new company, after allowing for the call of £1, would havo £1 10s paid on eaoh £10 share. With the preference share of £3 lOe fully paid up added to it, the total paid-up oapital of the new company would be £1,880,000.