CREDITORS MEET

Press, Volume LXXVI, Issue 23177, 14 November 1940, Page 12

CREDITORS MEET

CHERRY SMITH LTD. IN LIQUIDATION Creditors of Cherry Smith. Ltd., met yesterday In the office of the Official Assignee and agreed that the receiver (Mr P. N. Quartermain) should accept the highest tender made for items of stock. ~ ' Mr G. W. Brown, the Assignee, said that by order of the Supreme Court on October 14 the company was compelled to wind up, and this was the first meeting. There were 93 unsecured creditors, debts to whom totalled £6893 12s 6d, and debenture holders were the only secured creditors. Estimated total assets were £4362 5s 9d, from which loans on debenture bonds (£1994 7s) were to be deducted leaving £2367 18s 9d as the estimated amount available to meet unsecured creditors. .. ... The total deficiency was estimated at £7025 13s 9d, of which £2500 was loss of capital. Mr Quartermain explained that this deficiency would be reduced, in the event of the tender being accepted. by the excess of the tender over the estimate of value. This was 6s 4d in the £,and amounted to about £I4OO. J , . Mr C. Flockton moved in favour of accepting the tender, and when Mr A. M. Satterthwaite asked whether the business could continue, Mr Brown said that there were obstacles. Mr E. H. Rogers (former secretary of. the company) said the licences were very small. Mr G. W. Dowling (Wellington) said that there Was a moral question to consider. He was not prepared to put anyone out of business when a real effort had been made, or if there was a possibility of carrying on. Mr W. G. Wrigglesworth said that under the able management of Miss P. G. Smith the business ought to be able to go on. ■The motion ■ was carried with few