If you are one of those who recently invested $220 million in Reynolds Wines, you’d be aware that the company has until February 28th to conduct its 2002 annual meeting. It can only conduct the meeting within the permitted extension from the Australian Securities and Investments Commission if ASIC will shorten the mandatory four-week period of notice. The company is presently involved in an ongoing dispute with the tax office, has missed the deadline for its annual report and its shares have been suspended from trading for four months. Despite its recent capital raising, Reynolds defaulted on $7.6 million of redeemable convertible preference shares payable last November and in January this year failed to pay the first half-yearly dividend on another $12.5 million of convertible preferences. Reynolds has claimed that its dispute with the tax office has prevented it from finalising its accounts, determining its profit and meeting its dividends. Trouble is, according to The Australian newspaper, Reynolds has had three attempts to finalise these accounts, and can’t blame the tax dispute for all matters relating to the delay.
