Kirk creditors to get little return

Press, 25 July 1986, Page 2

Kirk creditors to get little return

PA Wellington « Assets of the bankrupt former member of Parliament, Mr John Kirk, were worth $18,262 but his debts totalled $284,023, according to the Official Assignee, Mr Pat Gallagher. The 35 creditors stand to get only about 17c for every dollar they were owed by Mr Kirk. A letter setting out details of his affairs has been sent to creditors by Mr Gallagher, who said Mr Kirk heavily overcommitted himself in property investments. His bankruptcy was “inevitable”.

Mr Gallagher said his administration of the estate was almost complete with only sundry items to be sold. Assets had brought in $18,262. Payment to creditors is expected within two months. About $l5OO will be subtracted from available funds to pay the assignee’s commission. “House properties owned by the bankrupt or jointly with his wife were sold before bankruptcy, with the exception of a property in Alford Street, Methven,” Mr Gallagher said in his letter.

“This was sold by way of mortgagee sale in January 1985, with a resultant shortfall. “Mr Kirk’s Aston Towers flat was sold before his departure (to the United States in 1984).” The surplus of funds was disbursed as follows:

$BOOO paid to Thomas Cook for traveller’s cheques: $3528 was given to Mr Kirk in cash; $19,776 was paid to Auck-

land Coin and Bullion Exchange for krugerrands. “The bankrupt apparently took 32 krugerrands with him. Four of these, valued at SUS34S each, were seized by United States Customs and have been forfeit to the United States Government.”

Mr Gallagher said the others were converted to cash and the funds used for living expenses. “The sum of $3050 was deposited Into a bank account under an assumed name. This has since been recovered by me, with > interest,” said Mr Gallagher. ' " '' ' ' ”

.“Airline tickets seized by. United States officials were subsequently released to me. The net proceeds of these were $8899.

Mr Gallagher said that superannuation funds of $14,611, appropriated by Westpac, were not available to him. “Mr Kirk has confirmed that he has no assets or bank accounts in the United States,” he said. “Mr Kirk worked for a few weeks only and made very little money. All living expenses were paid for out of his ‘savings’. . “Mr Kirk gave the causes of his bankruptcy as follows:

“Four and a half years ago he was given the opportunity to become involved in property investments for speculative purposes. He believes he was wrongly advised in this matter and this, coupled with limited administrative abilities on his part, were the main reasons for failure.

“In addition, the cost of bringing the properties to

a rentable ■ standard was more expensive than first thought and increased interest rates ruined any opportunity to make ground financially." To pay for “unanticipated extra costs” he remortgaged arid gave additional mortgages to properties.

Mr Kirk believed the situation was avoidable at the time of bankruptcy. He also believed that he failed finaricially because of long-term harassment, Mr Gallagher said in his letter.

"I considerV that' Mr Kirk heavily over-commit-ted himself with his property investments,” he said.

“He was undercapitalised with his company ventures, stock being obtained on credit and the enterprises being launched on overdraft facilities. In the circumstances, bankruptcy was inevitable.”

Proof of debts totalling $284,023 was as follows: Municipal Electricity Department, Wellington, $221. Wormald Fire Engineering Ltd, Christchurch, $144. General Finance Acceptance, Ltd, Wellington, $12,125 (this claim is to be reduced by the amount recovered under securities). C. C. McFadradin, Christchurch, $21,910. Michael Kerse, Lower Hutt, $5OOO. P. J. Sullivan, Christchurch, $5754. Mayor and Toye, Ltd, Wellington, $4896. Nahoc Australia Pty, Ltd, Australia, $21,207 (it appears that this is a company debt). Broadbank Corporation, Ltd, $28,023. Ashburton County Council, $373 (this was secured over the Methven property and has been withdrawn). Smalls Books, Ltd, Wellington, $552. Bellamy’s Wellington, $3OB. Plastic Agencies (H. F. Welder), Ltd, Wellington, $5lO. Glen Grant Auto Repairs, Ltd, Wellington, $lOO. Classic Products, Ltd, Porirua, $l2Ol. Aabaas Bros, Ltd, Christchurch, $720. City Securities, Ltd, Christchurch, $5738. Mutual Rental Cars, Ltd, Auckland, $204. Bank of New Zealand, Visa Centre, Wellington, $2068. Preston and Company, Ltd, Wellington, $960. T. S. Dacre and Son Nominees, Ltd, $66,544 (this is to be reduced substantially). Farmers Trading Company, Ltd, Auckland, $234. Trevor Ibbetson, Christchurch, $295. Trevor Ayson, Christchurch, $1173. Trustee Bank Visa, Wellington, $2689. Westpac Banking Corp, Wellington, $49,068. New Zealand Post Office, Wellington, $223. Goddard Moran Finlayson and Company, Wellington, $16,349. Fletcher Merchants, Ltd, Christchurch, $179. Bank of New Zealand, $3766. Municipal Electricity Department, Christchurch, $29. Stephen Kerry Ltd, Wellington, $l4OO. C. Scott, Wellington, $25,000. Diners Club Finance, Ltd, $1674. L. L. Kirk, Christchurch, $3375.