Venturers' Corner I notice that recently the price of Lamport
and Holt debenture stock has slithered from £44 to £40, a consequence, I imagine, of the success in the Court of Appeal of the White Star Line against the liquidator of the old Royal Mail Steam Packet Company. This is the connexion. The Lamport and Holt liquidator has claims as a creditor against the old R.M.S.P. from which a dividend of 6d. in the £ has already been raised, but thefe would have been another 8d. in the £ for creditors if the action between the R.M.S.P. and the White Star Line had gone in the former's favour. At the moment no decision has been reached whether the dispute will be taken, for a further and final judgement, to the House of Lords. But meanwhile here is the Lamport and Holt position.
The receiver for the debenture holders has already disposed of all the assets and now has in hand cash something over £170,000. On the £417,000 of debentures outstanding that is equivalent to roughly £41 per £103 of stock. The distribu- tion of this amount in cash to the debenture holders awaits only the final settlement of the R.M.S.P. claim. If the House of Lords gives judgement in favour of White Star Line, there will be nothing additional for Lamport and Holt ; if judgement should favour R.M.S.P., then the Lamport receiver should have a further £16,000 or nearly £4 per Lboo of stock to distribute. The point for the speculative buyer is that in current market conditions it may be possible to pick up Lamport and Holt debenture stock at, say, £394, as a short- tnIn holding. Add brokers' commission and stamp and fee and it would then cost roughly At) to bring home. On the worst assumption that nothing more is obtained from the R.M.S.P. claim nothing will be lost ; if the repayment price turns out to be £45 instead of £41, a very nice ti-x-free profit will be available in a few months' time.
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