WESTPORT COAL CO.

Rotorua Morning Post, Volume 2, Issue 233, 25 May 1932, Page 5

WESTPORT COAL CO.

(Press Assn.

REDUCTION OF CAPITAL APPROVED BY COURT REFUND TO' SHAREHOLDERS

— By Telegraph— Copyrlght.)

DUNEDIN, Tuesday. In the Supreme Court to-day, Mr. Justice Kennedy, made an order approving the resolution of the shareholders in the Westport Coal Company to reduce the capital of the company from £500,000 to £250,000. The reduction is to be effected by x'eturning to the shareholders the equivalent of 10/- a share upon the 450,000 shares issued, that is, by retur ning to the shareholders the total srirn of £225,000. This sum is to be made available by transferring to the shareholders New Zealand Government; inscribed stock, maturing in December, 1938, and carrying interest at 41 per cent. interest free of income tax and by payihent of sums of less than £10 in cash. Owing to the extensive and incrc.ising use of oil fuel, tbe development of hydro-electric power and reduced trade, the output of coal has been reduced from 639,000 tons iri 1913 to 240,000 toris for 1931. In these circumstances the capital is not now required for tlie development of ro w areas, and as the capital is in exc.ess of requirements, it is proposed to reduce it by 10/- a share the 10/- to be paid from the sinking fund established by the company in 1905 for that pnrpose. The company has undertaken to aeposit £10,000 in the Bank of New Zealand for the purpose of secu'ring claims of unpaid creditors. * / 9