L. M. ISSIT LTD.

Rotorua Morning Post, Volume 2, Issue 417, 29 December 1932, Page 3

L. M. ISSIT LTD.

TO BE LIQUIDATED WELL-KNOWN FIRM WILL PAY 14/8 IN POUND. CHAIRMAN'S CIRCULAR. Christchurch, Sat. Shareholders of L. M. Isitt, Ltd., have decided to wind up the company J voluntarily, the decision being subjeet _ to confirmation at a meeting on Dec- j exnber 30. It is expected that the company will pay approximately J 14/8 in the £ to ordinary shareholders. In a circular to shareholders, the Hon. L. M. Isitt, chairman of the Board of Directors, reports on behalf of the board the sale of the coxnpany's premises in Cashel Street, at what, in present conditions, was a satisfactory figure. "In our last repor't," he says, "we stated that owing to the unsatisfactory state of th'e property market, we consider that we should hold the property and endeavour to find a satisfactory tenant. However, an opportunity for sale having presented itself (before the restoration of the premises was conxpleted) the directors though it wise to avail themselves of the opportunity and turn the asset into cash, more especially as they had not had any application for a lease of the premises. The only assets of tbe company now unrealised are book debts, of which Whitpombe and Tombs Ltd., have collected over 50 per cent. oxx our hehalf; furniture and fittings, and certain amounts due from Whitcombe and Tombs, Ltd., and Lloyd's Insurance.

"Apart from sundry creditors and balance due under contracts for restoration of the premises, there are no other liabilities, with the exception of a contingent liability of £3000. This, as previously explained to shareholders, was a liability undertaken by the company in connection with the dissolution of the Isitt, Wildey business. Under the arrangement with the bank, your directors were compelled to sign a joint and guarantee with Messrs. M. Bai'nett and A. Wildey for the above amount, for which, of course, the company undertook to indemnify the directors. The settlement of this is a xnatter which still has to be negotiated. Liquidation Proposals "The position as revealed to-day is that, after allowing for payment of creditors and preference shareholders, and estimated costs of liquidation the company should pay approximately 14/8 in the £ to ordinary shareholders, subjeet to no claim arising from the contingent liability referred to above. "Owing to th'e efforts of the directors, and the satisfactory saies made by thern of the goodwill, and th'e premises, the position is such that, after rnaking provision for the contingent liability, a substantial return of capital should he availahle at an early date. The directors suggest that if the proposal for liquidation is confirmed on December 30, a return of 9/- in the £ should imrnediately beeome payable, leaving the balance in the hands of the liquidator availahle to cover costs of liquidation and as a reserve against the contingent liability. Meanwhile the amount to be placed on deposit at the high'est rate of interest obtainable. "Mr. Isitt, along with Mr. Christian, wish especially toj join with the other directors in expressing their sincere regr'et that it will lxot be possible ultimately to make a return to shareholders of the whole of their investmentg ixx the shares of this company, but in view of the very unsettled eeonomic conditions prevailing, the directors trust that shareholders will consider they have acted wisely in disposing of the company's freehold property, even though at a considerable lossk on its cost, so that the company xnay be liquidated at the earliest possible moment."