The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-28
BETTER GREENHUT
OFFER LOOKED FOR
Creditors Opposing Reorgani-
Zation Plan Hope for New
Proposition.
STILL TALK OF SUITS

The Greenhut creditors who are OPP
posing the plan OF reorganization sub
mitted 10 them by the creditors pro-
~tective committee. say they hope that
Capt. ]. 3. Greenhut and the Monmouth
Securities Company. owned by his
family. will IN the near future conn for
ward with a much better proposition
rather than face threatened suits for
2.40s. 900. The Greenhut interests ave
already offered 1914 cents in cash and
for the creditors claims. but a large
! number OF creditors have said they will
not accept that plan.
Counsel for the independent creditors
pointed out yesterday that they had al
ready gone a long way toward secur-
ing a more substantial cash payment
from the Greenhuts by getting the hear
ing set for Tomorrow morning or IN
application for a decree OF sale post
poned for ten days. They believe that
by the time the hearing on the applica-
ton is held on July S enough evidence
will have been presented before Ref
cree Peter B. Olney TO force the Green
huts 10 make a far more acceptable
proposition.
II that end Is not attained the inde-
pendent creditors committee proposes TO
present to Mr.. Olney sufficient creditors
votes to insure liquidation Of tho ]. b.
Greenhut Company's assets by the trus-
tees. II is estimated that IS cents
cash could be paid 20 the creditors in
liquidation proceedings. Of which IL
cents could be paid within thirty to
sixty days. According to the indepen-
dent creditors committees estimate at
least that much more could be obtained
by pressing claims against the Green
hut interests,
The first aim OF the opposition credi-
tors. who boast OF additional strength
every day. will be. It Is said, TO insure
the defeat OF the present plan OF re-
organization. With that end attained
they feel that Capt. Greenhut and the
Greenhut interests will be led to offer
additional cash payment - the credi-
tors. But II the Greenhuts' interests
fail 10 90 this after the testimony
which the committees counsel hope 10
present beginning tomorrow afternoon
1t IL planned to bring about liquidation
suits to prove the s2,40S.000 claims.
The creditors advance the argument
hat unless the new reorganiz!ng com
PAM does In one store more than an
I'll ,O0O. 600 business a year no dividends
can be paid on the preferred stock. In
the event Of reorganization. II Is main
tained. the ~bondholders will receive
most of the immediate benefits except
the loia cents cash payment to the gem
eral creditors, The bondholders will
receive. on a basis of n business Of Sll.-
900 900 a year, n net return Of $21S 900
each year, while the general creditors
must content themselves with 12h cents
cash and the prospect that the store will
do more than Sill 900. 900 business each
year.
These independent creditors also as
sert that In case the new concern does
not make a profit large enough to in
sure its continuance. even d!sreearding
its inability to retire any OF the pre-
ferred stock, tho merchandise creditors
would not be favored In an ultimate
liquidation OF the company's affairs
Thus, they say. II the store ran for a
year and then quit, the bondholders
would get "A 90 per cent. dividend and
then an equal share In liquidation, while
the mercantile creditors would get only
l2h cents and the sam share In liqulda-
ton receipts,
In support of their contention hat the
new company would he doomed TO ulti-
mate failure, tho minority creditors ques-
ton it's ability to do $l1 900 900 business
n year because of present business con-
ditlons.
IN the other hand, the hackers Of the
REORGANIZATION plan declare that they
have secured the hest possible offers
! from the GrcrnluIt interests and that il
Is to the immediate financial benefit of
the merchandise creditors to accept the
1919 cents cash and tho bala In stock
for their claims because OF tho uncer.
tainty OF results from possible litigation.