§ 69. Sir C. Osborneasked the First Secretary of State and Secretary of State for Economic Affairs (1) what rate of interest will be paid on the £1,500,000 unsecured loan stock in the Rootes Motor Company to be subscribed for by the Industrial Reorganisation Corporation; what are its terms of redemption; whether there is a sinking fund provision; whether it has rights over the £10 million preferred ordinary stock; what secured mortgages or debentures rank prior to it; and if there are any limitations to bank liabilities that can be created which would take precedence in case of bankruptcy;
(2) what rate of interest will be paid on the £1,512,288 preferred ordinary shares to be purchased by the Industrial Reorganisation Corporation in Rootes Motor Company; whether it will be a cumulative dividend; if there are any sinking fund provisions for redemption purposes; why he decided to enforce a put option at par on the Chrysler Corporation on 1st January, 1972, instead of during the whole period; and if facilities will be sought to deal in these shares on the London Stock Exchange.
§ Mr. Harold LeverThe terms on which the Industrial Reorganisation Corporation will be investing in Rootes were a matter for agreement between the Corporation, Rootes and the Chrysler Corporation. I have, however, arranged for the hon. Member to receive a copy of a242W circular letter, from Rootes to their shareholders, which contains most of the information which he is seeking.
§ Sir C. Osborneasked the First Secretary of State and Secretary of State for Economic Affairs if the director to be nominated by the Industrial Reorganisation Corporation to the Rootes Motor Company board will have any special powers of veto over, or will merely rank equally with, all other directors; when he will be appointed; and who has accepted this appointment.
§ Mr. Harold LeverThe director nominated by the Industrial Reorganisation Corporation will rank equally with the other directors. No nomination can be made until the proposals receive the approval of Rootes' shareholders and no decision on the Industrial Reorganisation Corporation's nominee has yet been taken.