Loan anbd Mercantile Company.

Feilding Star, Volume XV, Issue 210, 10 January 1894, Page 2

Loan anbd Mercantile Company.

■■ ♦ . In view of the necessarily brief and vague cablegram published on Satur> day in reference to the reconstruction scheme of the Loan and Mercantile Agency, one of our (N.Z. Herald) representatives made inquiries at the Head Offices of the Company. The scheme is not, he learned, in its entirety, in the colony, bnt sufficient is known of it that the following may be taken as correct: — The winding up of the old Company will be undertaken, and the shareholders will receive notice of their liability of the L 22 10s unpaid- up per share. They vi ill at the same time, however, have the choice given them— 'instead of paying this L 22 10s — of taking up shares in the new company, a fortnight being given them in which to make up their minds. It is, of course, necessary that a limit should be imposed, otherwise there would be no finality. To such as elect to take up shares in the new company — and it is expected all will — they will be able to do so as follows : Two LlO shares and one L 3 10s preference share for each share in the old company. To assist shareholders in this demand Ll on each new ordinary share (as distinct from the preference share; only will rank as ordinary calls, and for the remaining L 3 10s a preference share will be issued, this preference share having a first claim on the net profits available for divident. These latter shares, being fully paid up, it is expected would be immediately negotiated at par. With regard to the capital paid up in the old company, amounting to £2 10s a share, the scheme will provide for writing off £1 10s of this, and crediting holders with 10s paid up on each ordinary share, thus accounting for the remaining £1 on the existing ordinary shares. Thus the ordinary shares in the new company, after allowing for the call of £1, would have £1 10s paid on each £10 share. With the preference share of £3 10s fully paid up added to it, the total paid-up capital of the new company would be £1,380,000.