White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1922-06-25

The reorganization plan oil the
Consolidated Coppermines Company,
which is of interest TO such a large
number of shareholders in this dis
trict, is outlined in full by the re-
organization committee as follows:
Plan of the Committee.
New York, June ), 1922.-To the
Stockholders and the Bondholdcrs of
Consolidated Coppermines Company:
At the request of a majority OF the
bondholders and creditors and a
large number of the stockholders the
undersigned have consented to serve
as q reorganization committee. The
company has not been able to pay
the interest on its bonds for more
than a year past, or any oil its other
obligations. and all efforts TO raise
further working capital from stock
holders or otherwise secure financial
assistance having failed, i. Is neces
sary that a reorganization be effected
as promptly as possible TO preserve
the interests of both bondholders and
stockholders. To meet this situation
a plan and agreement has been pre-
pared which has received the approx
al of a large majority in amount OF
the bonds and creditors and many
holders of stock of the company. and
Is substantially as follows.
Plan of Reorganization.
J.. Foreclose the mortgage and
have the property bid in by the re-
organization committee.
2. Organize a new company with
IN authorized capital Of sS,000.0o0,
divided into 100000 shares of the /,
par value of So each. |
8. Issue approximately 740. 900
shares of stock In the new company
at IS per share 70 rthe face value of
all bonds, unpaid coupons. notes, ac-
crued interest and all forms OF in
debtedness il and as approved by the
reorganization committee. The total
indebtedness Is approx
mately 100000.
4. Offer approximately 100000
shares to present stockholders of the
Consolidated Coppermines Company
the basis of two shares OF stock
Of that company and $3.50 in cash
for each share OF the stock of The
new company. The stock offered to
has been underwritten.
The Bases of Exchange. |
Bondholders will receive the stock
Of the new company at par. towit. IS s
Der share for the face value Of their /
ponds and of all unpaid coupons up l
o August /, 1922. c
Stockholders will receive for each q
wo shares of the stock of the old I
ompany deposited and $3.50 paid in s
ash TO the dopositary one share of c
took in the new company Of the par S
alue of s.. I
mount thereof, principal and inter i
OF x4H - n.. G00 -txLI4 - .
be c company at the par value of v
8 per share. r
Claimholders of the old company, S
their claims upon examination are s.
pproyed and accepted by the reor- a
anization committee. will receive.
such amounts as shall be allowed Il
r adjusted by the reorganization II
stock of the new com C
any at the par value of IS per C.
hare. I.
Operations Of the New Company Il
The plan Of reorganization clears a
lie new company from debt, With the 81
)nsequent heavy burden of interest Il
and provides, besides 225,-
DO unissued shares. approximately h
$4,000 cash in its treasury for "a
orking capital and future corporate a.
lrposes.
The plans OF the old company for
,me time past have contemplated a
certain porphyry deposits Il
nd erecting concentrating and smelt- r,
e works for treating low-grade Fl
ores in connection with Fl
Igh-grade oxidized ores and a lin o.
ed tonnage Of low grade suiphide
res. Inability to secure the neces- C,
Try finances prevented the eonsum- II
Iation Of these plans. in the mean c
me the Nevada Consolidated Cop v
ar Company fortunately discovered, a