RECONSTRUCTION OF A BIG BUSINESS.

Gisborne Times, Volume XXV, Issue 2064, 16 December 1907, Page 2

RECONSTRUCTION OF A BIG BUSINESS.

COMPREHENSIVE PROPOSALS. United Press Association —Copyright LONDON, Dec. 14. ‘Presiding at the meeting of M. and A. MacArtnur Co.’s shareholders, Sir \Ym. .MacMillan explained that the losses occurred in connection with the shipping business and tho lock up of money in subsidiary companies and South African business. The directors considered they would be able to obtain from the banks sufficient money to make up for tho capital locked up in those concerns, but the financial stringency prevented this owing to the depreciation of securities. Mr. Whinney said the general effect of the investigations showed that the company lost about -£235,000. All ordinary share capital has been wiped out and a large hole made in tho preference capital. He was unable to hold out any hope that they would realise anything from the uncalled ordinary capital. His rough statement, -which may he altered when further details are cabled from Australia, shows that the liabilities aro expected to be £242,079, and assets £282,913, leaving a surplus of £40,833, exclusive of goodwill and 199,191 fully paid up shares in W. A. MacArtliur, iSoutli Africa, Ltd. Among the assets are stocks and shares of a hook value of £244,629, now estimated to produce only £23,015. He considers that unless the warehouse business can he saved tho preference shareholders will lose the whole of their money. Hi-s 6clieme of reconstruction consists of asking tho first debenture holders to take the security o'f the -warehouse business; asking the second debenture holders ‘to give time for realisation of their debt, which will eventually be provided .for; and asking tho creditors to take a share in the warehouse business to tho extent of 10s in the £. Tho proposed new company will he capitalised thus: £75,000 at 5 per cent.. first mortgage debentures; £125.000 5 per cent, second mortgage debentures, £125,000; (a) pound preference shares, carrying 5} per cent-., to he offered to creditors; (b) non ml shares, of .which 85,000 to he allotted to old preference shareholders, credited with 12s 6d paid on basis of five shares for each old £lO share, the shareholders paying 7s 6<l per share, thus providing about £30,000 working capital.