Although shareholders in Liptons had been looking to, some fairly
drastic schemes of capital reconstruction, tie one which has recently been put forward is even more severe than had been expected. Preference shareholders are required to give up all claims to dividend arrears and to sub. rust to a reduction in their fixed rates of future interest, while the nominal capital is also to be reduced and the Ordinary shares of 11 are to be cut down to shares with a nominal value of Is. "The 5 per cent. Preference shares are to be written down from 20s. to 12s. of which 10s. will be represented by one 5 per cent. non-Cumulative First Preference share of 10s. and the balance by two Ordinary shares of 1s. each. The 9 per cent. Preference shares have also to be written down to 12s. of which 10s. will be represented by non-Cumulative 6 per cent. Preference shares and the balance by two Ordinary shares of is. each. Although this scheme is drastic, it is probably not too drastic to meet the requirements of the situation, and given a recovery in the company's prosperity Preference shareholders will obtain some opportunity of getting back part of their present losses by their holding of Ordinary shares.
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