OCR Text |
Show Utah Power Co. Organization Plan Approval Sought Application of the Securities and Exchange Commission to enforce en-force provisions of the Utah Power & Light Company's plan of reorganization which the commission com-mission has approved, will be heard December 19 in U. S. district dis-trict court for Utah by Judge Tillman D. Johnson. The commission last week issued is-sued its order which, among other things, vests complete ownership of the company in the hands of its approximately 12,000 preferred stockholders, and simultaneously filed an action before Judge Johnson asking that the plan be enforced. Notice of the hearing, together with copies of the commission's findings, opinion and order, and a copy of the plan are being mailed to preferred stockholders of record as of November 13. Major provisions of the reorganization reor-ganization plan are: 1 Surrender and cancellation of the 3,000,000 shares of common com-mon stock and 2,100 shares of preferred stock held by Electric Power & Light Corporation. 2 Payment of Electric Power & Light Corporation of $650,000 as consideration for its surrender of stock and assignment to Electric Elec-tric of any claims Utah Power & Light Company might have against Electric Power & Light Corporation, or Electric Bond and Share Company and releasing releas-ing Electric from any claims Utah Power & Light might have against it. 3 Exchange by preferred stockholders of their preferred stock for new common stock on I the basis of 4- shares of the 1 new no-par-value common stock for each share of $7 preferred and 4-3's shares for each share of the SS Drefened stock they hold. I 4 Elimination of a $30,356,628 - deficit as of December 31, 1944 r tut somewhat -smaller now, in Ithe company's earned surplus account ac-count which will permit the payment pay-ment of dividends on the new common stock. President George M. Gadsby of the company said the plan will completely eliminate Electric Power & Light Corporation and Electric Bond & Share Company ownership of Utah Power & Light. Approximately 7,500 of the company's 12,000 preferred stockholders reside in Utah, Idaho, Ida-ho, Colorado and Wyoming, where the company operates, he said, and they own nearly 50 per cent of the 249,526 shares of preferred pre-ferred stock. |