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NODION

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Nodion Llywarch Hen

....... Cyfarfodydd Ysgolion.

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I I'Newyrth Huw yn Llanymor.

------Local Solicitor's Affairs.

IDolgarrog Works.

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I Dolgarrog Works. I Aluminium Corporation. I The New Scheme of Arrangement Approved. Pursuant to directions of Mr Registrar Hood, meetings of the unsecured creditors whose claims amount to over /TO, of the holders of Partici- pating Preferenc.e shares, and of the holders of i Ordinary shares of the Aluminium Corporation, Ltd. (in liquidation), were held at Winchester House to consider and, if thought fit, to, pass the following resolution — That the liquidators be and they are here- by authorised to. consent to the registration of a new company to be named. the Aluminium Corporation, Ltd., with a memorandum and articles of association which have already been prepared with the privity and approval of the liquidators and that the scheme of arrange- ment with draft agreement scheduled thereto and expressed to be made between this com- pany and its liquidators) of the one part and the Aluminium Corporation, Ltd. (new com- pany), of the other part and submitted, to this meeting ba and the same is hereby approved and that the said liquidators be and they are hereby authorised to enter into an agreement with such new. company (when incorporated) in the terms of the said draft and tü carry the same into effect with such (if any) modifica- tions as they think expedient." Mr Robertson Lawson (joint liquidator with Mr A. H. Gib-son) presided1 over each of the meetingsi. The Chairman said that on the schiemet which was passed! at the meeting- held on 27th April last the shareholders came, forward to the extent of Z40,000, whilst Debentures were promised under the scheme to the amount of only ^.10,000. Every ende-avour was made toi get these amounts increased, but it became obvious that the scheme would have to be amended, whilst at the same time it would be useless to, submit any further scheme for approval unless it could be stated de- finitely that THE CASH REQUIRED to carry through the new scheme would be forth- coming. After several months of anxious nego- tiations the liquidators were able tio frame a fresh scheme under which the necessary money could be found. He dlid mot think that he needed to point out the differences between the two schemes, as they were apparent from the printed copies in their hands. The main! point was whether they were prepared to accept Seven peir Cent. Preference shares to the full amount of their claims as finally admitted on the lines laid down in the scheme. The proposed Deben- ture issue had been reduced from £100,000 to £$0,000, and, therefore, if they accepted the shares they would, he ventured to say, be in a much better position than at present, for as creditors lhey had in front of them: preferential claims and the cost of liquidation, &c., amount- ing to-, say, ^45,000 in a company which was complicated by numerous legal difficulties and which had not any branch of its business in working order. Further, they would have the benefit of the new cash which was being put up by the shareholders alongside the same shares as the creditors were being offered-that was, they were offered, Seven per Cent. Preference shares, which were! valued by certain of the Preference shareholdiers at par, they paying sovereigns for their shares, while the creditors obtained theirs for the amount of their debts. POSITION UNDER THE SCHEME. Assuming, therefore, for a moment that the scheme was carried, the position in the course of a few months should be that they would ha;ve the bauxite mines in France equipped with the necessary facilities for loading bauxite on the railway, making them a self-contained working property. They would have the bauxite works at Heibburn-on-Tyne completed and .selling alu- mina., which would naturally make the shares of that company a liquid asset of considerable value. The Foil agreement would have been settled, the small plant erected1 and the shares of the Foil Oomptany made into another liquid asset. The necessary work tOo enable the com- pany to use the Dolgarrog water power, together with the payment of the uncompleted purchases of wate rrights on the Dulyn. scheme, would have been completed, and DoHgarrog would be a com- pact works complete in itself. The carbon works would have been put in working condition and I made a. valuable unit, while the serious difficul- ties in connection with the metallurgical works at Wal-lse-nd would also have been solvedL An additional point in their favour was that since the April scheme was issued,, the price of all,- minium had materially increased, which wa.s, of course, entirely in favour of the porpos-ed new company. Some criticism had been offered on the terms upon- which the Debentures, had been tentatively arranged, but he must point out that, though:' a portion of these had been taken IIp by shareholders and creditors, a oonsideraJbJe bal- ance had to be placed elsewhere. As this money was essential to the success of the scheme, he thought it would be admitted that those provid- ing it had the right to state the terms upon which they were prepared to help the company. If the creditors and the share-holders accepted the scheme arrangements for placing the whole ot the Debentures had been made. After announc- ing that he had received a letter from' Mr Tait withdrawing his offer, to Mr Hawkins, referred to in the circular of 29th October, he said that the total amount of the claims lodged was /r9! 480, but if the scheme went through he thought they coiuld safely cou-H't ^on at least ^80,524 of that amount being withdrawn., and it would also be possible, he "thought, to reduce the claims by, say, another £ 7,5°° to ^8,000, so that, as far as they could judge at present, the claims with which they would have to deal would amount to about £ 103480. ,He explained the position which would have arisen if Mr Teat's offer, had been accepted, remarking that, as a result, the dividend which the creditors would have been likely to receive could only have been from 3s. to 5'" in the £ if so much, and that after many months' delay. If they passed the scheme the liquidators would apply to the Court for confirmation and lose not time in carrying out the details. Proxies had been lodged in, favour of the scheme by creditors claiming to represent £ 135,000. On the other hand, if they did not p,a.9s the scheme he thought they must face a very serious position indeed, because, although Mr Tait"s offer had been with- drawn, the Receiver would be in the posiition- as he, indeed, had been all along-of taking steps to sell the Whole of the property for what it would fetch, and at this hour of the day it was certainly not possible to contemplate any other scheme for preserving the assets to them. I THE NORTH WALES POWER COMPANY'S CLAIM. CON Mr Scott raoved the resolution authorising the liquidators to consent to the registration of a new comply and a.p.pToving the scheme .of air- rangement- Mr Humphreys asked if he understood the ChairmaJl to say that all outstanding claims were settled, assuming that the scheme was carried? The Chairman: Practically, yes. Mr Humphreys supposed that the Chairman had i:IJJ mind. that the claim of the North Wales Power Company "wis unsettled. The Chairrntan replied that they had that in vieW, and he added that no formal claim had been lodged. Mr Humphreys.: Quite so. Notwithstanding thati you are aware that we have a claim, and a- llrge claim, too? The Chairman said that they were not pre- pared to admit a large claim, but they were Prepared to deal with it if the scheme went thro/ugh. Mr Humphreys remarked that the North Wales Power Company had a claim which would .amount to not less than. £ 25,000. The Chairman said that until the claim was lodged they could not deal with it. At that meeting it was, he thought, inopportune to dis- cuss the amount of the claim, and the view that the liquidators might take in the ulaimate settle- ment of it. At present the North Wales Power Company had lodged no claim, and that was the position-, so. far as this meeting was concerned. On a show of hands being taken, the Chair- man announced that the resolution was carried' by the necessary majority in number and value. (Cheers.) He remarked that the only vote agai,nst it was that of the Noith Wales Power Company, whose ciaJm had not yet been lodged:.

THE WERNHER-BEIT OFFER.

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