DEBTS AS ASSETS

Evening Post, Volume CIII, Issue 145, 22 June 1922, Page 8

DEBTS AS ASSETS

A BANKRUPT'S POSITION,

Debts entered as assets- made an interesting entry in a statement regarding a bankrupt's affairs placed before a meeting of creditor's to-day. Amounts duo to unsecured creditors totalled £364 16s sd, and the assets were shown as £500, that amount being due to the bankrupt from a company which was now insolvent. The meeting of creditors was presided over.-by the Official ■Assignee (Mr. S. Tansley).. Mr. T. G. Morgan appeared on behalf of the bankrupt, Frank C. Cudby, carpenter,, of Cudby and Pinny, Ltd. The bankrupt made a statement to the effect that he owned a half-share in the Woodware Supply Co., Ltd., and that was his only source of income. "The company," ho said, "owes me £500, being due to me ,for stock supplied on the .formation of the company. Mr. E. G. Pinny and I carried on the business of the. company, but it is now insolvent, and in liquidation. It hae failed owing to excessive cost of labour, and through it not having sufficient ■capital to carry out the contracts and "works undertaken."

The principal unsecured creditors were :—F. W: '■ Thomas, ' care of Buick Motors, Christchurch, £100. 18s 4d; H. Carr, theatre proprietor, Gisborne, £10p.19s 4d; H. Hepburn and Sons, iionfounders, Christchurch, £48 10s, lid; and Tolley. and Son, Ltd., electricians, \yellitigton, £30 11s. There were- no secured creditors.

Examined, tho bankrupt stated .that he bad been in business on his- own account, startiug .in January, 1914. Pinny hads joined in November, 1921, putting into the business £400. Cudby put in stock and machinery to the value of £400, and he was to take out £600 from work to be completed. /Ihc company was formed in ' November, 1921. There was never a partnership "Cudby and Pinny." A temporary hanking account was opened between the Lwo, and the account was never transferred Eo the company. Bankrupt said that when he entered into partnership ho was solvent. The debts, as set out in the list, had been incurred prior to the formation of the company, which was not done to protect him against claims.,. The roihpany was formed to complete winks.

After further examination, .it was considered by the creditors present that details of the position of the company, as well us a. statement of bankrupt's iii.wunts on 111-.' formation of the cornpa'iv, information as to the mtii.les of the" company. in id :is U, hfiikrnpi.'»• private hooks, should bo nbuiiietl. The meeting wan adjourned until the 6th July..