WANGANUI WOOLLEN MILLS.

Manawatu Herald, Volume LI, Issue 4405, 23 January 1930, Page 2

WANGANUI WOOLLEN MILLS.

bank forces situation. Wanganui Woollen Mills as a going. concern is under option of sale for £65,606, but the name of /’ | prospective purchasers has not vet been made public. A meeting of business men was held at Wanganui last week (says the Evening Post) when the proposal was made public. The meeting was convened with the object of obtaining a local option as to keeping the industry going. Mi 1 . E. P. Sealey, manager oi the National Bank, Wanganui, outlined the financial position of the company in its relations to the bunk. The balance sheet at June 36th showed a working loss of £9,822. The bank then required the directors to furnish proposals for ; further guarantee of more capital, and was prepared to carry on until the next balance. From fortnightly returns since’June 30th it appeared that the molls were holding their own. But the position has now been complicated by the withdrawal of a guarantor. Air. Sealey reported that the general manager •>f the bank had intimated that the bank was prepared to free the mill buildings, plant and land from the debenture conditional on £25,000 being raised to reduce the overdrafi. To cover the bulanee of the «>\ er<Lrait it would i*etjii£re a joint and several to be taken on the liquid assets, such as yarns and so iqrth, for £26,006. The margin of assets over the bank overdraft .amounted to £80,489. Mr. Robert l.ilburn explained that unless the company provides what is wanted the bank will insist on the directors signing an option. We know this option is a very bad bargain for the shareholders, but we have no alternative. Whatever we do must lie done immediately. We require a £.10,000 guarantee for the bank io carry on until the end of February. The directors met a committee appointed by the meeting, and subsequently reported that the committee was satisfied there tv as nothing to do but sign the option, which was to be taken up by the end of January. In June Messrs Mucky, Logan, Laid well and Co. made a proposal to take over the mills.