PERPETUAL FORESTS

Waikato Times, Volume 127, Issue 21194, 17 August 1940, Page 20 (Supplement)

PERPETUAL FORESTS

REPORT BY LIQUIDATORS SETTLEMENT OF CLAIMS The liquidators of New Zealand Perpetual Forests, Limited (in liquidation), will submit to a meeting of shareholders on August 23 a report covering the period March 22, 1939, to March 31, 1940. The report states that excellent progress has been made with the collection of debts and in the realisation of the company’s assets. Collections from sundry debtors amounted to £95,981. One of the principal problems was the settlement of large claims for income tax made against the company by the New Zealand and Australian authorities. After protracted negotiations these were adjusted on a satisfactory basis. Delay, however, was caused by a contingent claim lodged by the Taupo Totara Timber Company, Limited, requiring the liquidators to retain £600,000. The claim arose from an agreement in 1930, the company having purchased 34,000 acres of land from the timber company for afforestation purposes. Basis Of Balance Sheet It is stressed that the claim is a contingent one. Provision has been made in the item sundry creditors, which total £139,859, and a contingent liability exists only for settlement of a claim for any amount in excess of that provided for. Negotiations are being carried out to reach a settlement, but no distribution can bl made to shareholders until the claim is disposed of. The liquidators emphasise that the bal-ance-sheet is based on the assumption that as a result of the negotiations, settlement can be effected of the outstanding contingent claim. The balance sheet as at March 31 is:—Liabilities: Issued capital, £197,536; sundry creditors, including provision for liability under contracts not completed and income tax, £139,859; profit and loss appropriation account, £129,061. Assets: Furniture, fittings, £832; shares in N.Z. Forest Products, Ltd., £50,832; sundry debtors, less reserve, £104,096; investments, bank, cash, £310,695. The balancing total is £466,456.