ARMSTRONG WHITWORTH DEVELOPMENTS
Quite a number of readers have asked whether there is any further news of the Armstrong Whitworth liquidation plan which I outlined, with reference to A.W. Consolidated Trust debentures, several months ago. From what I hear, holders of these debentures should sit tight. The liquidation of the Armstrong Whitworth Securities company is proceeding according to schedule, and it may safely be assumed that a substantial sum in cash is now in hand as a result of the recent sales of the Scotswood works and other important assets. To cover the repayment at par of the two preference issues a sum of £2,100,003 is required, which is well within the proceeds of the sales I have just mentioned.
My own guess at the schedule for effecting repayment wou'd be three or four months, which should give ample time to make provision for all outstanding commitments and obtain legal sanction to repay the preference holders. This would mean that the A.W. Consolidated Trust could expect to receive £750,000 by virtue of its holding of 750,000 second preferences in say, April or May, which would enable the Trust to pay out its own debenture holders at just under £75 per £100 of stock. At the current price of £65 the A.W. Consolidated Trust debenture looks well worth holding as a short-term investment for its repayment prospects.
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