Nothing left after A.S.L. debenture payments

Press, 7 April 1979, Page 19

Nothing left after A.S.L. debenture payments

NZPA Sydney Firs t-charge debenture holders in the failed finance and property group. Associated Securities, Ltd, would be paid in full, but unsecured creditors and shareIholders were unlikely to receive anything, the receivers and managers (Mr G. Warhurst, and Mr A. Kewin) report. Firs t-charge debenture holders would receive their principal and interest in full, but second-charge holders were likely to receive onlypart of their principal, and no interest.

The receivers and managers were appointed on February 8, after the company announced further losses, and revealed that its largest shareholder, Ansett Transport Industries, Ltd, had refused to subscribe further preference capital. A.S.L. has about 34,000 first and second ranking debenture holders, and 8000 ordinary shareholders.

•] A statement of Affairs,; 'prepared by A.S.L. directors!: , shows that at February 8,! ,Isecured and unsecured credi-i /tors, including preferential j creditors, debenture holders, .unsecured creditors and. shareholders were owed a ' total of $289.1 M 5 : The estimated realisable; .'value of all assets at Febru-I / ary 8 is 5242.0 M. against a ’ book-value of $292.7M e. The receiver/managers; risaid, subject to various qual- , ifications, the values given] sjby the directors to the /(group's assets were “not unji reasonable in the circunii stances.” They said the fig-

ures suggest that group assets were sufficient to pay all debts in full, except unsecured creditors. Money owed to the company, including funds held by retail debtors and secured real estate advances, has been given an estimated realisable value of $214.8M

against rhe book value of j5234.7M. ! “It is important, therefore,] (to realise that whilst these] debts have been included at' a value as at February 8. 1979. their collection will 'take place over a period oft (some years, during which’ ; there will be attendant! I administrative costs and future losses from defaulting; (debtors,” the receivers said. : The real estate over which! the group held security for; I its advances included about! 12,000 acres, with various (zonings and approvals. “To reach an accurate; value of such landholdings;

> in present market conditions, ' is not possible and individ-; ■ ual assessments of individual properties may differ • widely. I “The eventual worth of 1 these assets will depend > upon future market and - economic conditions,” they 1 said.