| Show I Ic OGDEN c P PACKING REORGANIZATION IS S l 1 COMPANY TO BE BUILT UP lip FOR I ITS CREDITORS Plan Calls For Elimination Of Present Stock Interest I BUSINESS IMPROVES I Debts Can Be Paid and Business Prosper Com Corn CornI ComI Committee Committee I Believes Plans for the pi I t eorgan zi 1 tion Oil of the Ogden n Packing provi provision 10 1 r sion slon Lom company pany as dS mapped 11 out by Ue the creditors committee v a vre re re announced I here lere today as the notice was ws s pre prepared ard for a meeting on January 23 3 For three years the plant has lIas been operated under the direction o of I t committee of creditors James nan Bren-nan Bren- Bren Brennan nan has been the Ogden manager Working under und r a n a handicap o ot of a a of capital the company IJO far ti i siness andin end and in October and No Not 11 a a small profit the plans plais made for the re re- re 01 which will be submitted for approval at the January 23 meet meet- meetIng meeting meeting ing the creditors and plant face a fa outlook according to the Ie s of ot the committee The Tha plan Iii Is outlined in the tho following letter a copy cop of which was as nt to all the tle tors tors of the company 01 OF LETIER R 23 1922 To the Creditors ot ox Ogden Packing isbn ision Co In In the letter which the tee tee lee addressed to vou ou on November 0 emb r 17 ou were ere Informed that the toe comm tee had under consideration t two 0 plans for tor th the disposition ot of the Ogden Pack Packing ing lag company matter Of these two to plans one was as based on e 0 es troll l another r packing corn corn- pany to which the committee gave gate e the tho thoI most encouraging reception lIo ev the reverses 11 erses which this other corn lom cornI com 1 I any had Itself suffel ed during tho thio tw t two 0 years ears had bad left it in m a some some- s omi hat straitened condition and pro pre pre presumably it finally decided that It I would bo be imprudent to embark no now on suc such a venture Whatever hate er the thereas reas reason n the negotiations came to noth noth- nothIng nothing ing and the committee was ly I I ly obliged to proceed with Ith its alter alter- alternative native nathe plan taking plan taking over oter and leoc- leoc icor the company in the interests ts ot of the creditors eliminating the pre hires present ent eat stock interest and Issuing the se- se securities securities se securities of ot the tho I to the creditors in exchange change foi fot the lie obligations they now hold SOU SOUND D Arr A V It tUE I the he argument thit lilt mo moved cd the e to this action lies ills in m the fact act that the Ogden company has a aery avery tery ery real and consider bl sound hound as- as asit t et it value alu which it If properly conserved In behalf f of o the lie creditors should hould Ut- Ut UtI ui I pay them out I 1 he com com- pan alan has a class Ilist las plant l ln and it has hasa hasa ol a 6 5 0 Intel est In a stock block ard ards compan which has a bu business and which we 01 aie e authoritatively a ad alsed has an Plesent throe three or four tour tunes s greater titan that represented h by the at c the Olden Ogden Interest Is no now cap cap- caned ca ned on its books The com company pan d business has llos been Improving and would have hate Improved still more had hadit hadit 1 It had working capital In October and November despite this It actually succeeded buccE ded In showing knowing IL a after atler all charge small mall net These are arc the considerations made the committee averse to cents fifi cents on the dollar proposals anti and whIch brought brought it finally finall to the plan on which It is now at work worl J l PL IL N rD 1 his pi e plan was as formally adopted at a lull full meeting rj if the tha creil- creil committee The salient sallent points ot of the plan are these 1 The CIL creditors 1 will Ul for tor their present claims roughly roughly- roughly of ot the lie amount In 6 per pel percent l lit lIt 1 IS iii car mortgage rage bonds un- un another an another other third In ami the ilic lie lalance e In a Clas Cla hi B tock stock 2 The Tho preferred d stoe stock will wUl be v secured 1 by the Union Stock 0 ar ards ls tock lock lock and anti the so- so called so-called called ailed Pingree assets 3 The rho q present enl and local ts iii I Ogden to the manan e nt im arc nrc to supply ot of ota a additional working capital for which h will still 10 IJO Isu Is d a Cia Class Clas lommon stOck lOCk in nn an amount alent to the tint total lla LIas la q B StOCk il to the tie l that h is I approximately 1 I llio Class ss l stock Iu tot roi the ne new capital c ill linse hll a n very ry 0 osei the lie Cia Clif's II n common stock lock but of or Om C n A po position or- or Continued Continue on Page lage Two Vo COMPANY TO lOBE BE BUilT UP FOR fORI I ITS CREDITORS Continued From face One I to the tho preferred stock is- is issued issued Is Issued sued to the tho lie creditors III l I S II The Tho Interests supplying the tho working capital and I i taking the Class Claas A common stock will niso nl al o reecho an option on the II D common stock under the tho terms term of ot h which option they aW willbe ill I be enabled to take o vr the tho Clan laMI Cla B creditors common stock at per par Both Doth common stocks tock will cUI willbe willbe be placed cd In a noting oUng trust 0 6 The settlement will bo be made on the UJ December l 1 t t stahL Ie will Ill include lc the UC arrears ot of interest to that date The Th success of this plan depends of course primarily upon success In Inthe inthe the underwriting of o the new capital On this task tho the committees committee's o e In Ogden Oden and the management manage manage- management ment ment of the tho company are aro ar now en- en engaged engaged pared en-pared and report satisfying sand and OUTLOOK In In order that thit you may the th more easily and Quickly grasp crasp the situation I the committee Is enclosing with aith ah this It two statements statement one sho the compan company's comp ni s 's condition October and the other e exhibiting Its condition on that basis as a It will be aft after r this reorganization and refinancing It is 19 Tent apparent that thit the tho clean statement which tho the reorganized company ail aillie willbo III lie be able to mike make coupled with Ith the re- re reh rethal rc thal h al and gro growth crowth th In Its ail I enable the company to obtain an I ade- ade adequate ade adequate quate credit It Is cert certain ln that It ails n be bo able to pay Its bond interest t I from the ery tery cry beginning and it should surely bo bl able ble In the tery ery ry neD neat future If not Indeed Immediately to pay dh- dh dh on Its preferred The Tha com COIn committee committee mittel and the management both be- be bellove behove be believe hove lieve that In the tho course of time the thO common will have hav a market alue or of par or will be b redeemed under the option and consequently that In SIlt spite of the unusually ve vexatious delays an and 1 discouragements discouragement which hate ha e attend attend- attended attended ed the handling of this business the tho creditors will fin finally all be satisfied In full Barring contingencies now Un- Un un-forsen un forseen and the I Ii under underwriting of ot the tho new capital tho committees committee's hope Is that It It will bo be beable able to effect the tho exchange of ot securities tle ties for youl ou oui present notes before the end of although It Is possible po of course that the holding holding- ot of stock stock- stockholders stockholders stockholders holders meetings securing of ot con con- consents con consents and all nil the tho other necessary for tor- formal for formal mal legal e al step steps that must mut be bo taken m may y take a 11 than the th com com- commIttee committee committee Is allowing for tor By By order of the tho committee W W R It Secretary ot of the Committee V It R Room 1615 11 South South LaSaIle Salle L St Chicago III PLAN PLIN E oCD PL ED The stockholders stockholder must assess them them- them aches to raise ralso all goes Into the treasury of ct the th company I as working capital and none nono of which goes to tho the creditors according to toa toa toa a statement issued this morning by James H DeVine attorney Speaking of ot the financing he said The 1 he stockholders must y lesy l y an as- as assessment as that will 1 alse late for working capital 1 only That sum num will go Into the th treasury of ot the tho company rot Not any of It will go so the tha creditors creditor It Is my personal opinion after atter looking into the th question from all angles an- an angle Bl an-Bl gle that It if the stockholders stockholder pay the and carry It though they will come out obey okey When hen the present arrangements are re completed the thi company will show oho one of the best financial statements of any ony ny packing company of ot Its size In tho the States I The preferred stock tock is the the and only pays a dividend If e earned d I The common stock Is junior to that t taken by the creditor In other oilier words the creditors creditor take tako 00 In bonds I and the th remainder In stock |
