Show AN EXTENSIVE showing a proposition of abbey fel and grau to settle with their creditors ew york june 9 an extensive circular baa just been prepared betting forth the condition of the firm of abbey and grau which recently made an assignment and the plan for reorganization has been arranged the plan requires the consent of the creditors of the firm and the circular was sent to most of them today with a request for an early answer in regard to the plan and agreement proposed the plan is briefly that a corporation shall be formed to carry on the opera business of abbey ft grau with a capital of of which shall be preferred stock and common stock the unsecured creditors are to accept 40 per cent of the amount of their claims in preferred stock of the corporation and the remainder in notes of abbey grau the members of the old firm are to be engaged as manageri ma of the operatic ventures of the corporation po ration at an aggregate salary the first year of to be divided among themselves as they see fit and they are to turn all their present assets to the corporation in exchange for common stock the liabilities of the firm including amounts secured by mortgage or pledge of mortgage bonds aggregate in the neighborhood of of this is secured the circular says that the assets consisted in the first place of the tremont theater in boston its is put down at that property is subject to a mortgage to secure 6 per cent bonds aggregating which would make the equity of redemption in the property about the assets in the next place consist of the personal property used by the firm in connection with their various theaters such as costumes scenery properties etc effects contained in the metropolitan opera house are subject to a chattel mortgage to secure the sum of duo to the metropolitan opera and real estate com piny the other tangible assets of the firm such aa office furniture cash in bank bills receivable cei vable etca areef trifling value continuing the circular says from the foregoing statement it is obvious that the debts of the firm ann cnn not be paid by any application of tangible assets and that any forced liquidation by the assignees would lead to a disastrous sacrifice fica of values and would result in the payment of only a very small per on account of the liabilities it is however the desire of the firm to make such arrangements as will enable them if ro aible to pay their creditors in full and the only way ot accomplishing comp lishing this is believed to be by such arrangements as may permit the members of the firm to continue the prosecution of the business heretofore undertaken by them as representing a new corporation to be formed with the consent and approval of their creditors and to which corporation shall be transferred all the assets of the lata ann |