THE High Court yesterday confirmed a reduction in the capital shareholding of GPA Group plc.

The president of the High Court, Mr Justice Costello, was told by Mr Denis McDonald, counsel for GPA, that the reductions were necessary because the company had incurred substantial losses following an aborted public offering of shares in 1992.

The company, which purchases, sells and leases aircraft, has its registered office at GPA House, Shannon, Co Clare. Mr McDonald said it sustained losses in 1993 and 1994. These losses had crystallised and had been stemmed. The company was now back in profit.

The petition presented to the court said that on its incorporation in July 1975 the company had an authorised share capital of £20,000, divided into 20,000 shares of £1 each. The capital had been changed on a number of occasions.

The authorised share capital of the company was now £428,980 and $217.7 million while the issued and fully paid up share capital of the company was £428,980 and $207.48 million.

Because of the significant losses an extraordinary general meeting on October 2nd, 1996, passed a special resolution to reduce GPA's capital by $106.417 million.

To do this they would cancel all of the 106,523,999 million dollar deferred shares of $0.999 each and one special share of $1.

It was also proposed to reduce, the amount standing to the credit of the share premium account of the company by $312.406 million.

Mr Justice Costello made an order confirming the reductions sought by the company.