REDUCE CAPITAL

Hokitika Guardian, 25 May 1932, Page 5

REDUCE CAPITAL

WESTPORT COAL CO. ORDER MADE IN COURT. fßy Telegraph —Per Brets Association)

DUNEDIN, May 24

In the Supreme Court to-day, Mr Justice Kennedy made an order approving of a resolution of the shareholders of the Westport Coal Coy. to reduce the capital of the Coy. from £500,030 to £350,000. This reduction is to be effected by returning to the shareholders the equivalent of 10 s per share upon £450,000 of tile shares issued; i.e. thereby returning to the shareholders a total sum of £22,500. This sum is to lie made available by transferring to the shareholders New Zealand Government- inscribed stock, maturing on December 15, 1938, and carrying interest at 4-1- per cent, free of income tax, and by the payment of sums of less than £lO in cash. Owing to the extensive and increasing use of oil fuel, the development of hydro electric power, and the reduced trade, the output of coal has been reduced from 639.000 tons, in 1931 to 240,000 tons in 1931. Tn these circumstances, capital is not now required for the development of new areas, and as the capital is in excess of the requirements, it is proposed to reduce it by 10s per share, such 10s to ho paid from a sinking fund specially created bv the Company in 1904 for the purpose. The Company has undertaken to deposit £IOO,OOO in the Bank of New Zealand as security for the payment of tho claims of unpaid creditors.