FOREST PRODUCTS LTD.

Wairarapa Times-Age, 30 August 1938, Page 8

FOREST PRODUCTS LTD.

COMPOUNDING PLAN APPROVED. CIRCULAR TO SHAREHOLDERS. . (By Telegraph—Press Association.) AUCKLAND, August 29. The directors of New Zealand Forest Products Ltd.have made an announcement to shareholders that the terms for the compounding of the maintenance contract between New Zealand Perpetual Forests Ltd and the company have been approved finally by the Bondholders Incorporation Commission. A. circular to shareholders states that the final compounding agreement was submitted to the commission on August 11. After several days’ deliberation. the commission approved the general terms of the settlement but required certain amendments before giving final approval. The suggested amendments were given full consideration by the companies concerned and agreed to and the commission then made an order giving its approval to the terms of settlement. The position now was that Forest Products Ltd would shortly obtain legal possession of forests and the transfer of cash investments and assets valued at approximately £1,300,000, which Forest Products was entitled to receive from New Zealand Perpetual Forests Ltd in discharge of that company’s obligations to bondholders. Forest Products Ltd was now in a position which it had not previously enjoyed, as until the maintenance contract had been compounded it could not take legal possession of the forests nor could it take any practical steps toward their utilisation. With the removal of that obstacle the directors were now free to give final consideration to the plans for utilisation within the next few months, and they would proceed to implement those without delay.

TERMS APPROVED. ANNOUNCEMENT MADE BY COMMISSION. (By Telegraph—Press Association.) AUCKLAND, This Day. A meeting of the Forestry Bondholders’ Commission with representatives of the bondholders and the issuing company took place this morning, Mr J. S. Barton, S.M., presiding. The commission announced its decision to approve the terms, satisfactory to both parties, for compounding the maintenance contract between New Zealand Perpetual Forests Ltd and New Zealand Forest Products Ltd. The position now is that Forest Products obtains possession of investments and assets valued at approximately £1,300,000, which Forest Products Ltd is entitled to receive from Perpetual Forests Ltd, in discharge of that company’s obligations to bondholders to plant and maintain forests.