"MORTGAGED UP"

Evening Post, Volume CVIII, Issue 101, 29 October 1924, Page 6

"MORTGAGED UP"

HOTEL OWNER'S FAILURE

A CASE IN BANKRUPTCY.

A meeting of creditors in the bankrupt j estate of Elizabeth Mary Phillips, a married woman, of Wellington, was held, to-day before the Official Assignee (Mr. S. Tansley). , Unsecured creditors were shown at £3053 9s, which represented the total debts. Total assets were shown at £200, represented by furniture valued at £100 in the Grand Hotel at Hastings and £100 in furniture at Lyall Bay. Tho deficiency was therefore £2363 9s. Following were the principal unsecured creditors : —Le Quesne and Cowan, £67 3s ; Briggs Bros., £77 17s; T. and W. Young, £737 3s; Scoullar and Co., Ltd., £550; Burton Brewery Co., £150 12s; Griffen and Smith, Ltd., £215; assigned estate of J. D. Lynch, £115; H. W. Brown and Co., Ltd., £207 4s 6d; Commissioner of Taxes, £768. In her sworn statement bankrupt said that for some years prior to September, 1919, she successfully kept various hotels on the West Coast; South Island. She purchased the freehold of the Grand Hotel, Hastings, for £30,000, in September, 1919. ... At various times she paid into the hotel the following moneys:—Cash on purchase of freehold, £5000; cash on purchase of lease, £1250; cash on purchase of furniture when the lease was purchased, £4000; cash for stock when the lease . was purchased, £2000; further furniture, linen, and renovations, £1500; stamp duties and other charges, £800; total £14,550. Bankrupt continued that this hotel was not a financial success, and she outlined her various subsequent transactions with mortgagees. A property which bankrupt owned at Hastings valued at £3000 was totally destroyed by fire, and as the insurance premium had not been paid, the insurance moneys were not,recoverable. During 1923 various creditors were pressing their claims, and distress warrants were issued as well ,as bankruptcy petitions. She owned four sections at Lyall Bay, over which Messrs. Dwan Bros, also took security in consideration of the payment of certain pressing claims. The Official Assignee: " There seems to be nothing in the estate. Everything is mortgaged up." Mr. W. Perry (appearing for the bankrupt): "Nothing at all. I have told the creditors that on several occasions." It was finally decided to adjourn the meeting, to enable a statement to be obtained from Messrs. Dwan 8r05.,-who are also to be asked to be represented at the next meeting.