COMPANY REORGANISATION.

Taranaki Daily News, Volume L, Issue 61, 9 December 1907, Page 2

COMPANY REORGANISATION.

W. A. McARTHUR AND CO. Received Dee. 7, 4.30 p.m. Loudon, December 7. An extraordinary meeting of W. A. McArthur and Co. has been called for the 12th, to consider winding up with a view to reorganisation. The directors explain that the original warehouse business progressed satisfactorily and yielded a profit of £250,000 for the "year ended 31st January, but the result of the shipping agency business, in which a very large n mount of capital is locked up, did not realise expectations. The directors therefore decided some months ago ,to separate entirely the warehouse business, and to pursue a steady policy of realising the capital locked up in other parts of the business. Meantime an order was given as collateral security for special advances which were necessary for carrying on the business pending realisation of the various assets, and it was found necessary to issue £175,000 second mortgage debentures. Preliminary negotiations have taken place for the sale of the warehouse business as a going concern to the new company, and it is hoped arrangements will be made whereby part of the interest of preference shareholders will be secured in the new company, leaving the balance to be satisfied out of tlie liquidation of the present undertaking. In order to maintain the continuity of business, Arthur P. Whinncy, chartered accountant, has been appointed by the Court of Chancery receiver aud manager.