N.Z. LOAN AND MERCANTILE.
RECONSTRUCTION PRELIMINARIES COMPLETED.
The legal formalities relating to the reorganisatron of the capital account of the New Zealand Loan and Mercantile Agency Co , have, writes a London correspondent on March 7tb, been completed with the sanction given by Mr Justice Neville a few days ago to the scheme set before him. Hitherto there has been a prior lien debenture debt of a second debenture debt of £540,000, and £405,000 of third debentures, together with the £135,000 of paid up ordinary capital, while the uncalled liability on the latter issue amounted to no less than £1,766,000. Such a state of affairs, of course, rendered -the shares practically unmarketable. Under the scheme which has now been agreed to there will be £1,000,000 of second debentures, £1,000.000 of preference stock, and a similar amount of ordinary stock. In order to bring about these alterations it has been necessary to call up the greater part of the uncalled ordinary capital, and to enable holders of the shares to meet their liability a special cash bonus of 15s per 10s share has been declared. A cable recently received announces that the outlook is very encouraging just now, and agricultural conditions in New Zealand are satisfacotry. The company does not itself engage directly in agricultural operations, it lends money to those connected with grazing and farming, and is therefore much interested in weather conditions.
At the request of the directors, Mr Alfred Shepherd has recently agreed tu join the board, and his long experience of Australasian land and mortgage business should be of great benefit to the concern. As shareholders are aware, the prosperity of the undertaking has advanced considerably during the recent years though owing to the complicated conditions oE the capital account it has been difficult to bring this home in tangible form to the proprietors. Now, however, that the further participation of cartain debenture holders in surplus profits has been done away with, it will be possible to pay larger dividends than hitherto, ani the general outlook is regarded as decidedly encouraging It has taken over two years to carry out the reorganisation, and the manner in which the matter has been handled reflects much credit on the committee of share and debenture holtlers entrusted with the task.
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King Country Chronicle, Volume VII, Issue 560, 19 April 1913, Page 3
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379N.Z. LOAN AND MERCANTILE. King Country Chronicle, Volume VII, Issue 560, 19 April 1913, Page 3
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