Tropical-fish bankruptcy

Press, 2 September 1977, Page 3

Tropical-fish bankruptcy

A bankrupt importer of tropical fish will never be allowed to go into business again, if the official Assignee (Mr 1. A. Hansen) has his way. Creditors of Donald "Ihomas Cholmondeley heard this yesterday at their first meeting since he was declared bankrupt in July. Mr Hansen told them'that Mr Cholmondelev’s per-i formance since then had been so bad that he intended to recommend a “business prohibition” when Mr Cholmondeley became eligible fori discharge from bankruptcy in three years time. “In view of the fact that li propose to investigate the facts surrounding this bankruptcy much more fully, I don’t intend to make any! other comments at this! meeting.” Mr Hansen said. Mr Cholmondeley, aged 31, ran a business known as) J.xotic Aquatic Imports, Ltd. ! from his mother’s St Albans home where he lives. It was set up 18 months; Rgo, he said, to import and. wholesale tropical fish, acquatic plants, and fish food. , It is alleged that he owes’ more than $11,500 to 63 unsecured creditors. These in-! elude Dominion Rental Cars,' Ltd, which says it is owed more than $1300; Atlas Copco (N.Z.), Ltd, about $1490: and Apple Garden Aquarium, Hong Kong, $595. i' Mt Cholmondeley asserted' that many of the claims! were false — that he had either paid them, that much!: Jess was owed, or that they v. ere not his debts. According to Mr Hansen’s, calculations, Mr Cholmonde-o

'ley’s assets total about 1 $1470, leaving a deficiency ; of $10,416. Mr Cholmondeley disputed this, saying that 1 such assets as his collection' of cassette tapes were worth' $l5OO, rather than the $3OO at which Mr Hansen valued I them. I Mr Hansen told creditors | that he was still trying to, determine whether Mr Chol-i mondeley was in partnership ' with anyone else. If so, he! , would have to reject all; claims relating to this, and; I the partnership's creditors' | would have to look to the solvent partner for pay- 1 ment. j If The existence of a partnership were proved, many of the 63 creditors might fall into this category. I Mr Cholmondeley’s listed! ! assets might also belong to| !the partnership and would: not be available to pay cred-! litors. I Mr Hansen produced a let-1 ter from the manager of a ! branch of the A.N.Z. Bank.] [it said that Donald Christ-i opher Cholmondeley anil Wilma Constance Cholmondeley had opened a joint, ! account there, saying that l [they were in partnership. | I Mr Cholmondely: Some] oeople write beautiful fairy ; stories. , He admitted that ne 'sometimes used Christopher' as a middle name instead of' Thomas, and that he had [opened the account with his I mother, but denied saying that they were in partner-j [ship. Mr Cholmondeley told the, meeting that he had called , E.A.I. a limited liability, company because he be- ;

: lieved it was in the process of being registered, with him ■ and his mother as shareholders. He was not in ,'Partnership with any person. I He also denied that he had •traded as Armado Aqua1 riums of New Zealand. He | had contemplated setting up 1 ! another company under this I I name, with his mother and a ■I Mr I. Law as shareholders. 'I After his adjudication in bankruptcy, he had asked I his solicitor to set this in I motion. Under the regulations gov- ' erning bankrupts, Mr Chol-i mondeley would not have I been entitled to carry on [ any business. I He said his mother had [ run the business formerly J known as Exotic Aquatic Imports under the name of Armado Aquariums of New [Zealand. j Mr Hansen said that the i Registrar of Companies in [Wellington had no record of| [approval being sought or I given for the name of Ar- | mado Aquariums as a; limited liability company. j Mr Hansen: I put it to I you that what really happened was that you were! using the name Exotic Aqua-' | tic Imports until the time I you were adjudged bankrupt. In an attempt to conceal | your assets from me and . your creditors, you invented the name of Armado Aquai riums; and that the story [about the shareholding [ which was supposed to be ' taken in that company was a tissue of lies, that you were the proprietor of Ar- ! mado Aquariums. What do you say to that? ,

Mr Cholmon-deley: You are up the tree. Mr Hansen: You say it’s not true? Mr Cholmondeley: No. Armado Aquariums was going to buy the equipment and goodwill owned by E.A.1., he said, “at a price that would cover all of my; creditors.” He had been paid S4OO towards this. Mr Hansen: If 1 put it to you that Mr Law says he I did not at any stage acquire! any interest of any sort[ [whatsoever in Armado, I Aquariums, what would you; say? | • Mr Cholmondeley: He is, pulling somebody’s leg. Mr Hansen told creditors that he had been forced to obtain a search warrant dur-' ing his investigation. He later mentioned that .Mr Cholmondeley had been committed to prison before he petitioned for bankruptcy, for failing to pay sums demanded under a court order resulting from suits brought, by seven creditors. Mr Hansen asked him whether he had had any convictions for offences involving dishonesty. “No?’ said Mr Cholmondelev. “Well. I don’t think so.”