The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-02
GREENHUT MAY PAY
80 PER CENT. IN CASH
New Reorganization Plan Sub
mitted After Secret
Conference.
CREDITORS FORCE MOVE

There were indications yesterday that
the Independent creditors OF the j. Il.
! Greenhut Company would win without
litigation their fight for a much larger
! ash dividend h 12ik cents on the
! dollar, offered by the Greenhut interests
In the recently proposed reorganization
plan. Counsel for Capt. J. Il. Green
hut and the Monmouth Securities ON
pany--the Greenhut family incorporated
left a long conference last night TO
decide over the holiday week end about
Offering approximately 80 cents cash
and a stock proposition for the creditors
claims.
This sudden change OF attitude was
forecast IA few days ago when Capt.
Greenhut. questioned by Selden Bacon
and Saul =. Meyers. attorneys Cor The
independent creditors, before Referee
J Peter ID. Olney. asserted that he and the
Monmouth Securities Company. against
whom the creditors alleged asset claims
Of S2.4OS. 900. were solvent. The dail%
growing strength OF the Independent
committee. which yesterday mad about
l.200 creditors votes to oppose the re-
organization ana to stand out for an In
creased offer or liquidation and litiga-
ton. also indicated that a more sub
siantial proposition would be forth
coming.
1t came sooner han even the most
optimistic creditors had expected. None
of the lawyers connected with either
side would discuss what the new prop
osition will be. All were pledged to
secrecy. Some es'en vent 80 far as 10
denv that a meeting had been held YES
terday afternoon. THE u learned
however. that the trustees and their
counsel. counsel for the creditors pro-
tective committee and for the independ
ent creditors committee. and counse
for Capt. Greenhut n the Monmouth
Securities Company talked for two
hours and a half yesterday afternoon
In the office Of Judge walter q. Noyes
one Of the trustees. at 80 Nassau street
Realized II was Hopeless.
The meeting was arranged late
Wednesday afternoon after Cap
Greenhut and the Monmouth Securitie:
Company each had issued a statement
concerning certain financial transaction
involving the $2.40s.0O0 questioned b,
the independent creditors. The pro
tective committee and the Greenhut in
~terests realized. II Is understood. tina
II would be hopeless to push the pro
posed plan again the creditors op
position. Furthermore the protectiv
committee had never really accepted o
even recommended the offer of l2L
cents cash and stock IN a new company
. The Greenhut interests, therefore
, went to Judge Noyes's Office prepared
to make a better cash offer. VIVA
amount IL was could not be learned
. but the independent creditors. 1t is said
rejected it fatty. They then suggeste'
! a proposition that would be acceptable
Additional cash payment was the prin
, cipai demand. 1t was learned that thi
: cash offer. IL conceded by the Green
: hut interests, and that Is considere'
: likely, will be substantially more thai
25 cents on the dollar and somewha
, less han 37la cents.
i The acceptance Of such terms by tn
Greenhut interests would be PRACTICAL
equivalent to "A concession OF tho lega'
; ity Of the independent creditors claim
: of 50, 4Os, 900. The creditors have bee
I, trying to establish causes OF action 10
l Ave suits to recover that amount 10
general distribution. Likewise 1t woul
4 require that amour of cash to met
a dividend of about 80 cents. And II
y known that the independent creditor
I demanded such a concession az part {
, any acceptable reorganization scheme.
= The new plan. which the Greenht
tOuIStl Will uttiNV uPti W pNNN
= day, provides for the continuation {
II the business as did the former prof.
! osition. What emains of the creditor
u claims over a cash payment will he 81
y cured by first and second preferre
II stock and common stock. probably q
least % per cent. of the first preferred
e The independent creditors are not OF
e posed to reorganization, but they ha
e held consistently that the recently pr
S ,Apad Milan uas tnaApnnatP
Want Bond Issue Set Aside.
The concession OF the additional cas-
to make up "A 80 per cent. dividend
the most important feature OF the ne
h proposition. The creditors had pianns
to try to set aside the 100000 Dor
issue in 1910 when the Greenhut sto
n was consolidated with the Siegel-Coop'
"a Company. but that aim has been CO.
~ sidered most uncertain. They felt tn;
II the bond issue could be declar'
:. void the creditors would receive doll
m for dollar.
" II the new proposition is accept'
the money required to meet the ca'
In dividend will be raised by Capt. Gree,
:, hut, 1t is understood, through an unde
~ writing syndicate Of the first preferr'
" stock in the new operating company.
Another important feature OF the d
IS mands made upon the Greenhuts yeste
y day, It was learned. referred to alleg
&c claims Of individual creditors again
re the Greenhut company's officers
!: statements issued to Dun's and Bra
We streets in 1884. Whatever the teri
ce Of the new organization proposal ii
said that the merchandise creditors W
d. reserve the right to sue for any mon
CT they may have lost by selling goods
ne the Greenhut store on the basis or I
ed statements to the commercial agenci'