Under the plan of reorganization all of the present outstanding common stock of the Company will be cancelled and new common stock of the company will be issued of the total par value of approximately twelve million dollars. About 98 per cent, of this amount will go to present holders of 8 per cent. debentures and Mrs. Liza Barden; the remainder will go to the present stockholders of the company. Holders of eight per cent, debentures loaned money to the company with the expectation that upon the maturity dates, April 1, 1940, and April 1, 1941, the principal of their loans woold be repaid by the company. In view of the foregoing the aompany's policy shall be to sell company real estate as rapidly as practicable and advantageous and, with the proceeds thereof, first pay off the secured indebtedness of the company and then reduce the outstanding capital stock by retiring shares from time to time by pro rata payments to stockholders until the onstanding capital stock has been reduced to approximately four million dollars.
By following this policy tt may be reasonably expected that by April 1, 1941, the greater portion of the moneys loaned to the company by eight per cent. debenture holders will have been repaid. On the basis of present operations the company will be able to operate profitably and could pay small dividends on the twelve million dollars capital provided by this plan of reorganization. Successful operation could be continued on greatly reduced capital. It is the opinion of the trustee that even though the capital stock is reduced to approximately four million dollars the company can continue to operate successfully and pay reasonable returns to stockholders,
Text read from the printed page and cleaned; old type leaves the occasional error.