Proofs of debt may amount to $675,000

Press, Volume CXI, Issue 32705, 7 September 1971, Page 1

Proofs of debt may amount to $675,000

Proofs of debt against Byrne and Company—the Christchurch stockbroking firm declared bankrupt after the failure of Australasian Secured Deposits, Ltd—may total $675,000, the Official Assignee (Mr I. A. Hansen) says in a letter to creditors.

Depending on the final assessment of the large amounts owing to over, seas brokers and A.S.D., Ltd, as well as unresolved asset realisation, it is expected that the dividend from the bank, nipt estate will be relatively small, he says.

Certain issues concerning the ownership of Byrne and Company have not yet been resolved, and it appears that litigation may be necessary. There are also some involved legal problems in the realisation of assets and it is unlikely that a dividend payment will be made this year, Mr Hansen says. In some cases proof of debt has not been submitted; and the last day for submitting proof has long since passed. Persons in this cate-

gory will not be eligible to receive dividends when paid. Mr Hansen says he expects the same to apply to the fidelity fund of the Stock Exchange. The discretionary powers of the fund will mean that proofs of debt admitted for the purpose of payment of dividends from the assets of the bankrupt estate will not necessarily be admitted by the fund. It is expected that the fund will call for claims soon. A statement on the liability of the fidelity fund of the New Zealand Society of Accountants is also expected soon, but it would appear at this stage that sharebroking by a chartered accountant absolves this fund from liability, Mr Hansen says. The liquidator of A.S.D. Ltd (Mr H. Beattie) has advised creditors to submit claims to the Society of Accountants, because its rules

provide for a time limit on such claims. It is expected tjfiat, where applicable, this time limit may be extended, Mr Hansen says.