Proposed Possible Solutions

• Cease trading and wind up the company.
• STB has three real assets: the ISIC agency and its other business; furniture and fittings; and the debt owed to it by NZUSA. In the case of winding up, STB would lose all these assets except the debt from NZUSA.
• Estimated cost of winding up: between $200,000 and $250,000. (The Board of Directors of STB estimated a cost of $261,000 for this option).
• This money would be paid over by NZUSA, without any real hope of seeing any of it again.
• Injection of funds through increase in share capital.
• This was the recommendation of the STB Board of Directors. They were looking for an injection of at least $150,000; $66,000 from NZUSA's debt repayment, and $100,000 in new share capital. Bank overdraft eliminated, AUSTS debt lowered to $26,000, in turn reducing debt servicing costs. (Cost estimated by VUWSA's law firm of this option: at least $160,000).
• Objections: 1981 students paying the full amount of losses over past several years.
• The money injected will simply pay off debts, not create value. STB's next step would have to be to approach the bank for a further overdraft.
• STB would be over capitalised; perhaps having some $250,000 share capital with a relatively tiny value of assets.
• No change in the present administrative structure. Difficulties between NZUSA and STB would continue unchanged.
• The Rennie/Victoria Proposal
• Explained in detail in the article on page 5. However, total cost of $116,000; share capital roughly equivalent to assets; and providing a base of operating capital.
• Allows one company to get on with debt repayment, and the other to get on with providing travel services.