HEAVY MORTGAGES.

Auckland Star, Volume LXIII, Issue 266, 9 November 1932, Page 5

HEAVY MORTGAGES.

BANKRUPT HOTELKEEPEK. UNABLE TO MEET PAYMENTS. A meeting of creditors in the estate of R. Porter, a bankrupt hotelkeeper, was held to-day. Bankrupt's schedule showed liabilities to secured creditors of £10,500, and to unsecured creditors of £1560. His debts amounted to £4703, his assets to £326, and his deficiency to £4377. In his statement, bankrupt said that in 1023 he had bought two sections in Anzac Avenue for £8150. He had paid £3000 cash and raised a mortgage of £5150. In 1929 he had bought the Carlton Hotel at Palmereton North. His difficulties started then, and at the beginning of 1932 he saw that he could not carry on. He called his principal creditors together, and the mortgagee creditors who attended the meeting granted him a temporary moratorium. He said he had paid too much for the hotel and the taking , were much below what he expected. Hie commitments in the hotel were so heavy that he could not keep up the payments on his Anzac Avenue properties, and could obtain no relief on his hotel mortgage.

The Official Assignee; Mr. A. W. Watters, said that the statement was full and that, contributing causes of the bankrupt's failure, appeared to be the decrease in the value of the sections and the hotel.