HASTINGS BANKRUPTCY

Daily Telegraph (Napier), Volume 58, Issue 179, 30 August 1929, Page 8

HASTINGS BANKRUPTCY

i DISPOSAL OF BUSINESS SHARES ACT10N TO BE TAKEN. A further meeting of ereditors in the bankrupt estate of Montague Smitli, butciier, Hastings, was lield 111 Hastings yeoterday to consider the disposal of 1U0 fchares in the timi of Oswald Smith, Ltd., of Dunedin, lield by bankrupt. Mr G. G. Chisliolm, otficial assignee presided, and pointed out thafc the sliares were worth at leasfc £1 eacli. Bankrupt has been iu the process of transferring these shares to his daughter for a sum of £20, lie liaviug heen unable to dispose of them otherwise. lu the meantime, however, the oflicial assignee said he had writtcn stopping the transfer of the shares to tlie bnnkrupt's daugliter. No doubt Ihe daughter woiild take the £20 she had paicl, and with this done there would be an equity of £80 111 the shares. Ifc was also anticipated that there would be a surplus of £80 from tbe book debts and this, witli the equity in the plant, would prohablv mean a surplus iu the estate. He suggested thafc the ereditors and Bankrupt miglit reach a compromise for the good of all concerned, rather than fighfc the matter. The official assignee pointed out that bankrupt's daughter was now running a butchery business, liehl tbe mortgage 011 the liouse and plant, and was now in possession of shares for which she paid only one-fifth of their value. Unless bankrupt acted reasonably, the only alternative was to upset the sale of these shares. These would realise a payment of 17s (5d in the £ and he hoped that hankrupt woulcl come to terms. If not, the ereditors would have to take the shares and also the book debts, and tlien they would prohabl.v get their 20s in the £. If bankrupt stood pat, then the ereditors would have to go ahead and upset the sale. Bankrupt said that his daughter was not prepared to hand over the shares unless the plant was taken as well. He said that unless the ereditors were not careful, they would have a whole bost of other ereditors down on them. The official assignee: Who are the host of ereditors? Have you any more you liave not sliown in your list? Bankrupt: 1'iii not" sayiiig any more about that just now. The official assignee: Well, if you have not sbown all your ereditors, then you are answerable. Bankrupt: That's all right. I'm not saying anything more ahout it just now. Bankrupt then went 011 lo relate that lie was forced into bankruptcy through vindictiveness, a statement wliic-h was strongly challenged by Mr P. E. Kelly. The official assignee refused to allow any further argument in this direction. Bankrupt again said lie was prepared to agree to the shares being taken over, provided all the plant was also taken over. It was to be either ali or none. The official assignee said that the plant was not an asset and tlie ereditors only wanted assets in which there was an equity. Mr Kelly then moved that the official assiguee be authorised to secure all assets available, sufficient to pay 20a in the £. This was seconded by Mr W. Percival ancl carried.