LAKE MAHINAPUA DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 9 October 1901, Page 2

LAKE MAHINAPUA DREDGING COMPANY.

The following circular has been issued by the Lake Matunapua Cr. P. Company.

“A new company is now in process of formation, for the purpose of raising sufficient capital to work this claim. On all aides it is agreed that the claim is a very ' waivable one, and the late company was only forced into liquidation through lack of funds to complete the plant. If the property and plant is offered at auction it will fetch very little, and the creditors 'Outside of the Bank will get nothing. Some of the shareholders of the company are so sanguine that the property is payable that they are prepared to spend up to £2,500 in developing it. Messrs Cable and Bobertson recently reported on the claim, and estimate that £I4OO will be sufficient to alter and add to the plant, so that the claim can be worked economically and to the best advantage.

•The Directors of the old company are willing to pay off the bank overdraft, amoun'dog to £I6OO, and take up the whole amount in fully paid up shares in the now company, and are willing to subscribe part of the £2500 required in cash. In order, however, that the company ican be floated successfully, it would be teoessacy for the other creditors to ft take fully paid up shares for the ' amount of their claims. This is necessary, as the present state of the market renders it impossible to secure more than £2500 in cash.

The only exception might be in the case of several smaller claims for wages, etc, that may have to be paid in cash. If you can see your way to accept fully paid up shares in the new company, kindly notify me by wire.

I cannot too strongly urge you to accept this offer, as failing the formation of a new company, I cannot see any prospect of the creditors receiving any thing. There seems no reason why the new sMures should not bo easily saleable within a very short time of work being started. It is also proposed but not yet settled, to allot the shareholders in the old. company a few fully paid up shares «o that thsir expenditure of £6,000 wfllnr.c be entirely lost to them."