Financial restructuring (1933) Sporthotel Pontresina

hotel pontresina:

balance sheet , 12 month income statement summary

during twelve months ending 31 march 1933 accumulated losses of a.-g. hotel pontresina rose 146,782 234,357 swiss francs. accumulated losses represented more 80% of nominal share capital value had remained @ 300,000 swiss francs since company had been set in 1933. although income statement twelve months ending 31 march 1933 disclosed significant operating loss, larger loss financial one, in form of 74,345 swiss francs of interest expense. financial restructuring unavoidable.

the annual general meeting on 5 july 1933 approved write down of nominal share capital 20% of former value. investors agreed exchange 5 old shares 1 new share, still nominal value of 500 swiss francs. new shares total value of 40,000 swiss francs issued cantonal bank in respect of company s outstanding mortgage debt (which included both capital element , unpaid interest). bank agreed write off 17,800 swiss francs, , waive interest 5 years on remaining 35,000 swiss francs of mortgage. practical outcome of restructuring bank owned hotel, holding 114 of 200 shares remained following completion of restructuring. further 62 of shares held cantonal credit institution ( bündner kreditgenossenschaft ), had been in receivership since 1931, , later during 1933 fell hands of graubündner kantonalbank.