§ Queen's recommendation signified—
§ Motion made,
§
That for the purposes of any Act of the present Session providing for the reconstitution of the Mersey Docks and Harbour Board as a
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Company and the reorganisation of the capital of the Board it is expedient to authorise any loss to public funds arising from the making of provision by that Act for:—
(1) (a) the conversion of the existing mortgage securities for loans made to the Board before 27th November, 1970 under section 11 of the Harbours Act, 1964 or otherwise into new debenture stock secured by a floating charge upon the whole undertaking of the Company, so that the said conversion be effected in manner similar to the conversion into new debenture stock of other securities issued in respect of moneys raised by the Board;
(b) the postponement of the dates of redemption of, and the reduction of the rates of interest payable on, the new debenture stock during a moratorium period applicable in a similar manner to all such new debenture stock;
(c) the alteration (by a scheme made under the Act so as to be binding on the Company and each of the holders of such new debenture stock to secure, so far as practicable, the financial viability of the Company) of the rights and privileges attaching to the new debenture stock in a manner equitable to all such holders of new debenture stock, including the writing down of the nominal value thereof, the postponement of the dates of redemeption thereof and the reduction of the rates of interest payable thereon; and
(d) the allotment (in accordance with the said scheme) of share capital to the holders of such new debenture stock in a manner equitable to all such holders of new debenture stock;
§ (2) providing security for loans so made to the Board on or after 27th November, 1970 as priority borrowings secured by a floating charge upon the whole undertaking of the Company, similar to the floating charge provided as security for the new debenture stock, but taking effect for the purposes of section 322 of the Companies Act, 1948 as if created at the time of, and in consideration for, each such loan, being borrowings ranking as to interest and capital pari passu one with another and in priority to all other borrowings of the Company, whether made before or after any such priority borrowing, subject to such alteration of the rights and privileges attaching to such priority borrowings as may be agreed by the Secretary of State with the approval of the Treasury;
§ (3) the discharge of the appointment by the High Court of a Receiver of rates of the Board on behalf of the Crown.—[Mr. Patrick Jenkin.]
§ Money Resolution to be considered upon Tuesday next at Seven o'clock.