INSOLVENCY OF COMPANY

Press, Volume CI, Issue 29956, 18 October 1962, Page 19

INSOLVENCY OF COMPANY

No Statement Of Affairs Filed

A meeting of creditors of Lyttelton Services, Ltd., was adjourned sine die by Mr D. Malcolm, agent for the Official Assignee (Mr O. T. Grattan), yesterday because no statement of affairs .as required by the Companies Act had been filed by the company, which was represented by a director and its secretary, John Ainger. From October 17, the company had been acting in contempt of the law, and the Supreme Court would be notified unless the situation was remedied within a reasonable time, said Mr Malcolm.

In an unofficial statement. Ainger said that the company owed £2855 3s 6d to 12 unsecured creditors at October 12. Furniture, fittings, and plant at September 30 were valued at £517 17s fid. and debtors at the same date owed £785 15s Id. Stock on hand at March 31 was worth £222 17s.

Reasons he gave for the bankruptcy of the company, which was formed in February, 1958, were failure to obtain contracts up to the standard of the highly paid staff employed by the company, inability to obtain radio servicemen for Lyttelton, and a drop in business resulting from the credit squeeze. To Mr Malcolm, Ainger said that the company had been insolvent from the first week of business. It was unable to get a man capable of doing both electrical and radio work, and finally a radio repair man was hired. However, when the backlog of repairs was overtaken it was found there was not enough work to carry a full-time radio repair man, and he was not replaced when he left. A venture into ship maintenance did not succeed, and expected business from the sale of television sets failed to materialise. If and when a statement of affairs was filed, and if it was deemed necessary, the Official Assignee would call another meeting, Mr Malcolm said.

A committee of three creditors was appointed by the meeting to inspect the company’s affairs.