Report of the Liquidator: De-venture Holders Carrying on Business A general meeting of shareholders in the "hanghai Kelantan Rubber Estatds, Ld. (in liquidation). was called for on Tuesday afternoon at the offices of the liquidators. (Messrs. Seth, Mancell McLure), in pursuance of Section 187 (2) of the Companies' Ordinance of Hongkong.
Mr. S. A. Seth presided. and presented the following report:
This meeting is called to comply with the provisions of the Companies Ordinance of Honjskong, which requires that, in the event of a winding-up continuing for more than one year the liquidator shall summon a general meeting of the company at the end of each year from the commencement of the winding-up, and shall lay before the meeting an account of his acts*and dealings and of the conduct of the winding-up during the preceding year.
The company, by extraordinary resolution, went into Hanidaion on August 29, 1921, and Mr. A McLure and myself were appointed liquidators, jointly and severally, for the purposes of such winding-up and our appointment was confirmed at a meeting of creditors called in accordance with Section 181 of the Ordinance and held on September 29, 1921. By virtue of the powers vested in the debenture holders and their trustees, under a deed of mortgage and trust dated February 14, 1916, 1 was also appointed a receiver on behalf of the debenture holders on September 27, 1921.
Rather than realise at once, the debenture holders have—con-sidenotely decided to carry on the business of the estate in the hope that, with rigid economies, there will eventually be a surplus for shareholders. At the present time, with the selling price of rubber at so low a level, this hope would appear io be somewhat re-and any reasonable appreciation in the price of rubber will see the company on a paying basis. The f.0.b. cost of ovr rubber to-day is below 20 cts. a Ib. The estate is now entirely on alternate day tapping. Messrs. Sime, Darby & Ca., Ld., Malacca, have been appointed managing agents im the south and they have been god enough to undertake the agency without remuneration for the time being. The result of their careful handling of the estate's affairs. judging from the reports received, are highly satisfactory. Forward sales of tubber were made in December, 1921, of 3 tons monthly January/ June at 42 cts. a ib and in June this year for delivery July December. two tons monthly at 31 cts. a lb. These forward sales, affected through Messrs, Sime, Darby & Ca., have been of material assistance in the carrying on of the business. 1 the present time in communication with Messrs. Sime, Darby & Ca. regarding the possible surrender of the unplanted area of the estate.
the company went into liquidation in August. last and the last balance sheet issued to_shareholders was made up as at December 31, 1921, I have made up balance sheet and statements the lines of the former ones as at December 31, 1921, for your information. These accounts are no indication of the position to-day, for very rigid economies have been instituted since then and I anticipate that the results for 1922 will disclose 1a balance on the right side. provided rubber prices do not recede any more. Strictly, as liquidator, I have no accounts to submit. as the whole of the company's assets have passed out of the hands of Mr. McLure and mysell in our capacity of liquidators and, are in my possession as receiver for the debenture holders. As I have said. however, these assets are not being immediately realized and the estate is being kept going at the risk of the debenture holders in the hope that it will be able to discharge its liabilities as a going concern and, given reasonable conditions, eventually revert to the shareholders. The realization of this hope depends entirely upon the future price of rubber. All we gan now do is to look forward to a substantial appreciation. The estate is being worked at the minimum of cost. There are no expenses beyond those directly connected with the estate. No interest is being drawn by the debenture holders anid no salaries, fees or allowances are drawn by the managing agents, liquidators or receiver. We are paying our way and, unless conditions become worse, we can continue to do 80. If conditions improve, we will work at_a profit.
For want of funds, the liquidators have been unable to print and circulate the 1921 accounts.
Text read from the printed page and cleaned; old type leaves the occasional error.