Judge orders winding up of St Albans Real Estate

Press, 2 September 1986, Page 4

Judge orders winding up of St Albans Real Estate

St Albans Real Estate, Ltd, which had its sales licence cancelled in June, and which has debts of more than $150,000, was ordered to be wound up by Mr Justice Greig in the High Court yesterday. Mr Nicholas Till, for the company, said that the directors had many anxious deliberations, and had come to the conclusion that they were unable to give an assurance that payments would be made. ■ The company, therefore, withdrew its objection to the winding-up petition, which had been set down for a defended hearing.

Since May the petition to wind up St Albans Real Estate has been adjourned several times.

The original petitioner was The Star Christchurch, Ltd, which claimed a debt of $3257. That claim came before the Court on May 28, and, although the debt was never paid, that company was given leave to withdraw, and Allied Press, Ltd, sought to be substituted as petitioner. When the petition was called on June 18, Allied

Press, of Dunedin, told the Court that it did not want to proceed. No reason was given, but it seemed that the newspaper publishing and printing company, which claimed a debt of $12,747, also had not been paid.

The public first became aware that St Albans Real Estate was in trouble as far back as April. A group of real-estate agents who had worked for the company, said that they haad not. been paid commissions since March.

The company went into receivership on April 17, and the company secretary, Mr John Langley, was appointed the receiver.

The petitioner, who had the company finally wound up, was Mr John Bentley, one of 14 real estate agents who were owed about $30,000 for unpaid commissions. He gave evidence that he was owed $9167. The company has unsecured creditors of $123,902, in addition to the money owed to the

commission agents and the debt owed to the first debenture holder, Lands and Homes, Ltd, which placed the company in receivership. That was done by Mr Langley, who in addition to being secretary of the real-estate company, is a principal of Langley and Warner, which controls Land and Homes.

One of the major creditors of the company is the Christchurch Press Company, Ltd, which claims a debt of $23,837.