Deficit Of £2348 Shown By Bankrupt Builder

Press, Volume CII, Issue 30066, 26 February 1963, Page 5

Deficit Of £2348 Shown By Bankrupt Builder

A deficit ’ot £3MB wm shown m the statement of affaire of James Orrick Tbocngwon, a builder, read to a meeting at hi» creditors yesterday by toe Official Assignee (Mr O. T. Grattan). Thompson wac adfcidged bankrupt on his own petition on February 11. Mr Grattan Mid that Thompson’s statement of affairs showed toe amount owing to unsecured creditors as £7434 and to secured creditors £1514, with toe value of toe securities as £2547. Book debts were shown m £lB2O, toe value of plant as £933 and toe value of work in progress as £l3OO. This left a deficiency of £2348. In a statement of toe causes of Ms bankruptcy, Thompson said he bad been a builder for more than 25 years. He was 58, .married, with four of a family. He dad not consider he had in any way contributed to Ms bankruptcy by excessive drawings, He did not spend money on ateohol or gambling. Because of lack of capital he had been forced to borrow from finance companies at a comparatively high rate of interest, and this had contributed largely to his bankruptcy, apart from his periodic ill-health. He estimated that to toe last five years he had lost two years from work because of ill-health.

Within the last 12 years he had sold his home properties at Wainoni road and later at Pomlton avenue, both at a profit and princi,pally to ease his lack of capital. The sales did temporarily ease the situation. He was living to a rented place at £1 a week. He had intended to bring a week-end bach at Little Akaloa to saleable standard and then sell it with his boat to try to improve his position. “The immediate cause of my bankruptcy was the resolution of my creditors which asked me to file my own petition forthwith. Since that time my accountant has prepared accounts which, subject to the verification of work in progress at £l3OO, show a net income to the date of adjudicattoa of £1966. I consider such income could have been maintained in. the future from profitable contracts I had in

view in spite of tot psweat coDditiom in tot building trade which are more toan nocmaUy coovetlttve.** said Thoanpson’s statement Mr Grattan said ft sppearad from toe figures that Thoognon had been more or lees under a handicap since 1951. On an approximate calculation ft seemed toat, over toe last 12 years, his drawings had exceeded his income by about £2500. Mr Grattan said tot toss on a contract Thompson was now working on would be £5OO, and ft wm his toteatton to diaciakn toe contract. It definitely appeared to b* onerous. The meeting was adjourned sine die.