IN BANKRUPTCY.

Bush Advocate, Volume XXI, Issue 281, 1 June 1909, Page 5

IN BANKRUPTCY.

ESTATE OF J. J. PATTERSON. MEETING OF .CREDITORS. A mooting of creditors in the above estate was held at tlie office of the D.O.A. this afternoon, when there A\-as a. fair attendance of creditors. Mr N. L. Gurr, D.0.A., presided, and the bankrupt was represented by his solicitor. The minutes of the previous meeting were taken as read. . The D.O.A. submitted the following report : — "As the. .^creditors are probably aware, the application of the bankrupt for- confirmation by the Supreme Court of the proposed composition was definitely dismissed by the Court oil. March 4th last, and it is only since that date therefore that the assignee lias been in a position totake definite steps toward the realisation, of the assets^ •The state of the books kept hy the bankrupt lias been previously referred to. As scoon as the task began of examining 'the business dealings of I the bankrupt, the insufficiency of the books became so obvious that the as-, signee deemed it his duty to Jay informations against the bankrupt un■der tho penal clauses of the Act, for not keeping proper books of account. As these charges are now pending, it would not be j>roper to do more at "present than to refer to tho factsas an indication; of the difficulties the 1 assignee has to contend . with. The difficulties have been increased by the fact- that certain books of the bankrupt which had not been handed over to the assignee were destroyed •by a fire in the banknrpt's office in :the month of January last. 'The services of an expert accountant have "been, necessary to elucidate the par-' ticulars appearing in the remaining ;bo*oks. Mr W. McCuliocli, F.1.A., N.Z., of Napier, was employed for this purpose. In ca£os where it seems probable that definite amounts are oAving to tho estate the assignee is now in a position to take steps for their recovery. Very few of the amounts shown as debtor ledger balances in the schedules filed by the bankrupt prove to bo debts which there is any reasonable prospect of -recovering. As regards the position of other supposed assets,. the assignee has taken a legal opinion, as ji xeshlt of which it appears possible a substantial amount of funds and property now in the legal possession of third parties mayb e recovered for. the"' benefit *6f " the ' estate. ' '. It • is : inadvisable to give details at a public meeting, but tho assignee is strongly of the opinion that legal steps should be taken for the- recovery of these funds and properties. , The accountant's report is not yet available, and until it is so, ; it is impossible for the assignee to indicate .what action should be taken. It •would be well that the creditors ! should appoint a committee, or super- . visors j to confer with, when this complete report is received, as it is. obviously inconvenient for creditors so scattered as in this case to meet frequently. The asignee has been awaiting this report before calling a meet■ingv ,and was in -hopes when he called the present one on the requisition of the. creditors that it w^uld have been ready for them. . Mr Patterson questioned the accuracy of tho statement that the court had decided against the composition on 4th March. As a matter of fact he had not proceeded with his application. . ' : . i ■ ■ I 'The 1J.0.A-. replied that he had been, advised by his 'solicitor in ac- . cordance \vith the terms of his report. ' ; Mr Morgan wanted" to know why a meeting of creditors had not been held before this, and the D.O.A. replied that while the application for the compromise was pending he could not call t]iem together. Ho had hoped to hav-o .the accountant's report fov them that day but at had been quite 'impossible to* do so.. He now expected to have it ready in a few days. Mr Thomson. askod if the D.O.A. had a balance-sheet of the .business ofWylie and Co.y. but the D.O.A. replied that he had not been able to get one out yet, but all the stock was practically paid for. Mr Gieseii wanted to know if the D.O.A. was satisfied that the nonacceptance of the compromise was in thoMnterests of the creditors and the D.O.A. was distinctly of the opinion that it "was. Mr Dempsey said he had information which loci him to believe that the compromise should not have boon acci'pted, . ■Tho question of tho logal expenses was discussed at length, and it was explained that the solicitor employed by tho D.O.A. was only paid for what he did, andthat at .scale ratos. Mr Denrpsoy moved thoTollowing vi>- : solutions, .'uicl Mr H. 1). Knight seconded': (1) That a.s the estate did not revert to bankruptcy- until March-. 4th last m> unnecessary- delays have taken place, further, fhat. the... .■•conduct'of its affairs by the D.O.A. meets

jj^njjk^ho approval of this- meeting; (2). ■dSftfsit the keeping open of the store un-til-such time as 1 the ownership of : tho building- ' and the adjustment of accounts between, the reputed . owner ami the D.O.A. have heen settled is' also approved; (3) that the. investigations of, the accountant ordered by the judge l)e continued until finality is reached; and that the expenses- to date he approved ; (4) that this meet-, ing authorises the D.O.A. to institute proceedings against Mrs Lavinia Patterson for the recovery of any properties or assets standing in her name which he may be advised by his solicitor are recoverable for the estate. ■ . . Mr Oollett asked why the compromise had not been given effect to, seeing that a large majority of the creditors were in favor of it., The D.O.A. replied that the facts had- been., put before .the court, and the' court had decided that the. compromise should not he accepted. He was not to blame for the action of the coui"t. .. " ■ Mr Morgan contended that the ■court was influenced by the recommendation of the D.OiA. / Mr Dempsey remarked that the D.O.A. probably knew more than some of the creditors. ' . An argument then arose between the D.O.A. and JMr Giesen as to the price at which Wylie and Co, were selling chaff, .but the discussion was generally considered wide ; of . the point. . The meeting then proceeded to discuss the first resolution, some contending that the business- of "Wylie and Co., should be wound up at once. The D.O.A. pointed out that the object in' keeping the business goyig ivas that lie was in hope of getting the building into the estate, and the whole thing could be sold, better as a going concern than otherwise. In reply-to a question the D.0.A1 was not prepared to say what the turn over of the business was. Mr Collett thought "it . inadvisable to paps the resolution as it tied their, hands too much.. ■ ! .V-- "' The practice of giving credit at Wylie and Co. 's was referred to by Mr Rose, who spoke stfongly against it. . . : ■■ ■ . ■; i - "*»■;.■- ■'■■ The D.O.A. said he was 1 -only, giving monthly credit, and he Ayas prepared to guarantee' all the accounts he had opened. v . „■ (Left Sitting.'). .