Group Of Companies

Hamac Under Review

Affairs Of New Group Of Companies In P-N. Guinea

• Within the last three years, persons then connected with the well-known insurance brokers, Messrs. Harvey Trinder Ltd., of London, Sydney, and Port Moresby, formed a group of companies which were registered in Papua and New Guinea. Their names and nominal capital were: Halmac Holdings, Coffee Products, Ltd., £250,000. Ltd., £lOO.OOO.

Ela Services, Ltd., Morobe Hotels, Ltd., £50,000. £250.000.

Moresby Importers, Hotel Cecil, Ltd., Ltd. £lOO,OOO.

Eriama Shipping Wanigela Planta - Co., Ltd. tions, Ltd.

Eriama Estates, Aro a n a Estates, Ltd., £1,000,000. Ltd., £40,000.

A certain number of these com panies began to trade actively.

Ela Services Ltd. obtained some leading car agencies, and built an impressive establishment near Ela Beach, Port Moresby, and entered the motor and garage business.

Cattle farming began to Wanigela.

Not long ago, a pedigree bull, re ported to have cost 2,500 guineas m Sydney, arrived at Port Moresby and was sent to Wanigela.

The hotel companies purchased the Cecil Hotel at Lae, the Wau Hotel and the Goroka Hotel, and have conducted them for the last two years.

The finance required for th.se operations ran into some hundreds of thousands of pounds. The public did not know exactly how it been arranged—but it was generally believed that Harvey Trinder Limited was interested, in some way.

"Restless"

The group of companies, in the course of trading, incurred sub stantial liabilities. Early this year, a few of the bigger creditors be came restless, and appealed to Messrs. Harvey Trinder Ltd.

It then became known that Messrs. Harvey Trinder Ltd. was neither a shareholder nor a guarantor of Hamac Holdings Ltd., but was merely a creditor and a large creditor.

On July 16 last the managing director of Messrs. Harvey Trinder Ltd., in Sydney, sent a Ltter to creditors of the group of companies, in the following terms; “Re Hamac Holdings, Ltd., and sub sidiary companies— “As you are probably aware, Harvey Trinder (NSW) Pty., Ltd., is a very sub stantial creditor of the above Group of

Companies, and we understand that cer tain monies are owing to you.

“We have made a preliminary investi gation into the affairs of the Hamac group, and there are various aspects of the matter which we, as Principal Creditors, wish to put before our fellow creditors.

“We have decided to call a meeting of all Creditors so that we may discuss the future of the Group . . .

“In view of the seriousness of the situation, we should be pleased if you would arrange for a representative to be present ...”

The meeting was held in the Boroko Hotel, Port Moresby, on

July 28.

(Continued on page 150)

During July, Mr. R. Keith Yorston, a Sydney accountant acting on be half of Messrs. Harvey Trinder Ltd., and Mr. David J. McLeod, described as the manager of Hamac Pty. Ltd., of Caltex House, Sydney, visited Papua and New Guinea, and met Hamac creditors, and set out the position clearly.

Plan Offered Creditors

A total of £lOO,OOO is owed to secured creditors. A further £lOO,OOO is owed to various unsecured people, and £330,000 to Harvey Trinder (NSW) Pty. Ltd., who also rank as an unsecured creditor.

Creditors were informed that, if immediate liquidation is sought, un

secured creditors could na more than 5/- in the £.. creditors generally would hi hand, while the interests m cerned tried to form anotli pany to take over all Hams there woud be hope of an es ment to creditors of 5/- ii and payment of the balanc 12 months.

Persons acting for Harvey Ltd., and Hamac Holdings 3 that if this plan could be operation, unsecured credita expect to be paid in full Harvey Trinder received anj liquidation of their debt.

The Port Moresby credJ the July 28 meeting, unai approved the plan; but, August, a number of Lae ■ pointed out that they ha credit not to Hamac Ltd.

Hotel Cecil Ltd., one of the subsidiaries; and, as the Ha was operating profitably, th see no reason why they sir be paid.

An attempt to reconcile tl ferences was in progress August.

Highly Respected Nar

Harvey Trinder is an highly respected name in th ance business in Britain Australia; and, since the 1958, because of the assocL the name with Hamac I Ltd., the Sydney and the Boards have shown concer the position of the New group.

The purchase of the Cec; Lae, from Mrs. F. M. SteT one of the Hamac compai a price in the region of £BO,O place in 1957. Mrs. Stewart she left with her daught* J. Birr ell, on a Central A tour, in July, said that th been a satisfactory settlemi In June, Mr. Joe Bourke II his wife on a tour of the F He said he had received th of the £40,000, the price v Hamac subsidiary paid for fi Hotel.