FORM FIFTH AVENUE BUS CORPORATION |
|---|
|
The New York Times
November 28, 1922
Step is Revealed as Part of the Interborough-Manhattan Readjustment Plan.
G. M-P. MURPHY IS HEAD
Interborough-Metropolitan to Purchase 103,518 Shares Held by Bankrupt Interborough Consolidated.
The formation of a new corporation, the Fifth Avenue Bus Corporation, was revealed yesterday as part of the Interborough-Manhattan readjustment plan and the ultimate extinguishment of the Interborough Consolidated Corporation. Details were contained in a letter sent by the Protective Committee of the Interborough-Metropolitan 4½ per cent. bonds to all shareholders.
The plan calls for a readjustment of the stock of the New York Transportation Company—a holding company owning the entire capital stock of the Fifth Avenue Coach Company, operating Fifth Avenue-Riverside Drive bus lines. The stock of the New York Transportation Company is now held by trustee in bankruptcy of the Interborough Consolidated Corporation, which, under the Interborough - Metropolitan readjustment plan will be liquidated.
According to the announcement the Interborough - Metropolitan Committee, Grayson M-P. Murphy, Chairman, and which represents $61,200,000 out of $63,808,000 bonds outstanding, will acquire 103,574 shares of the New York Transportation stock now held by the bankrupt Interborough Consolidated Corporation estate. This stock will be vested in the new bus company, which will issue enough no par value stock to provide five shares for each $1,000 of Interborough-Metropolitan 4½ per cent. bonds, the stock so issued to be vested in voting trustees.
From time to time, it was stated, the new corporation probably will acquire additional stock of the New York Transportation Company, of which the general public now holds 131,476 shares, and that shares of the new concern shall be issued therefor. The Fifth Avenue Bus Corporation, it was explained, has offered to purchase the 103,574 shares of New York Transportation Company stock held by the Interborough Consolidated Corporation at $3,262,581, or $31.50 a share, the market price as of Nov. 15.
The officers of the Fifth Avenue Bus Corporation are Grayson M-P. Murphy, President; Frederick Strauss, Vice President, and D. R. Noyes, Treasurer. The directorate includes Charles H. Sabin, Charles S. Sargent Jr., Frederick T. Wood and Stephen Van Ness.