AFFAIRS OF COMPANY

Dominion, Volume 29, Issue 302, 17 September 1936, Page 12

AFFAIRS OF COMPANY

Meeting of Creditors Affairs of Dominion Mercantile Agency, Ltd., were considered at a meeting of creditors held yesterday in Wellington. Mr. 8. Tansley, the official assignee, explained that the meeting was to consider what steps were to be taken with the business. Information could not lie given concerning accounts of creditors and debtors, for the affairs of the company appeared to be rather involved and considerable work would be necessary to clarify the position.

No summary of the financial position of the concern was available but a preliminary statement for the information of creditors set out that liabilities amounted to £4599. the assets being £2144, including £1.173 in cash at the bank and £25 cash in hand, with book debts estimated to produce £SS2. Unsecured creditors'were owed £1506, and there was a debenture charge of £650. lu the discussion it was stated that there were about 700 creditors and about 800 debtors in most parts of New Zealand. Thirty-two attended the meeting, many being solicitors representing clients. The official assignee was appointed liquidator ano was authorised to call for tenders foi the business, either as one business covering New Zealand or as three businesses situated at Auckland, Wellington and Christchurch. The action of the liquidator in carrying the business on until the date of the meeting was approved. but he was instructed not to continue operations, the opinion of some creditors being that rent lor offices and salaries for staff would eat up most of the available cash in a few weeks. It was explained that the validity ol a debenture held by a bank would be investigated as a normal part of liquidation proceedings, one suggestion being that it would lie possible to make the bank an ordinary unsecured creditor. So as to provide creditors and debtors with information about the state of the accounts as soon as possible the liquidator was authorised to have the books written un to date in the offices at Auckland, Welington and Christchurch. Mr G. R. Powles, who represented Ross and Glendiuing Ltd., the petitioning creditor, said that action bad been taken following an informal meeting Ot some creditors in Auckland, but liquulation bad to be accomplished in the registered headquarters of the company, wbieb W!ls Wellington There were creditors tu practically every part of New Zealand. Several aspects of the business were shrouded in mystery at present.