Advices from Canada report an offer by the City of Calgary to its bondholders, acceptance of which is recommended the Bondholders'
Committee. The feature of the plan is the refunding of present indebtedness by a similar amount of new Debentures maturing January 1, 1962. These new Debentures. will all bear interest at 424 per cent, except thai holders of the existing 5 per cent. Debentures will receive that rate until the present date of maturity. and then 4% per cent, until the Debentures are repaid.
Debentures bearing interest at rates bigaer than 5 per cent, will be exchanged for the new 4%2 per cent. Debentures, holders receiving cash equal to the present value of the difference between interest at the present rate and at 4% per cent. for the period up to the present maturity date, or to January 1, 1962, if the present maturity is later than that.
In effect, therefore, no reduction in interest payments is asked, but the City will obtain the advantage of a longer maturity on part of its debts, and consequent reduction in sinking fund charges,
Text read from the printed page and cleaned; old type leaves the occasional error.