BIG DEFICIENCY

Evening Post, Volume CIX, Issue 117, 20 May 1930, Page 11

BIG DEFICIENCY

G. H. LYSNAR BANKRUPT

NOTHING TO .OFFER

(By Telegraph.—Press Association.)

GISBOENE, 19th May

Showing a surplus of £40,425 in 1921, and an estimated deficiency of £24,350 in 1930, was the postion revealed to-day at a meeting of creditors of Georgo Henry Lysnar, solicitor and sheepfarmer. At the conclusion of tho meeting tho Official Assignee suggested that iv view of the full statement presented by bankrupt no further examination was necessary, and the meeting was adjourned sine die. Bankrupt's financial statement estimated tho deficiency at £24,350. Debts due to unsecureel creditors totalled & 14,482, and to secured creditors £30,704. Tho estimated yaluovof securities was £25,000, leaving a deficit of £u704.. There was also shown a contingent liability of £4379, covered by William Douglas Lysnar's guarantee to Mrs. L. T. Burnard, and further liabilities totalling £485. In the course of a very detailed statement, bankrupt mentioned that in March, 1921, his financial position showed assets £100,792 and liabilities £54,547, leaving a surplus of £46,425. In January, 1927, the assets, which comprised freehold lands, station stock, wool, ■ dairy farm, town property, and leasehold lands valued at £92,819, wove sold under forced sale- for £ 61,055, making a loss of equity totalling £31,7(34, and his liabilities had increased to £72,100. ' . . ' CAUSES OF BANKRUPTCY. Bankrupt attributed his failure to the following causes: — (I). Depreciation iv the^ value of wool and meat, which had the effect of lowering the prices of all his property, and which ho attributed to trusts and combines. (2) To harbour board litigation, which cost him about £5000. Ho prepared a plan of Gisborne Harbour, and when he submitted it to the board the latter agreed to pay a certain sum under certain conditions. Bankrupt contended that the plan adopted by the board, known as Beynolds's plan, was practically a copy of his (bankrupt's) plan. The board took a test case to the Court and '.' ultimately got out of their liability because they had not called for tenders before making the agreement." Bankrupt considered that if the'board had mot acted as it did hewould not be bankrupt to-day. (3) Through arrears -in payment, mortgagoes under tho Supreme Court sold lands valued, at £48,620 for £31,000. . ■• ' . Bankrupt's statement concluded as follows: — "I regret very much having to say I am unable to make any offer to my creditors. I also much regret the amount owing by* me to my individual creditors, especially' my brother, W. D. Lysnar, who is: wholly unsecured and who has" advanced me in cash, including money guaranteed, over £18,000. I cannot help admitting that he has been much too good to me. At the same time I would like to point out to all my ■creditors that'l have lost all, both money and property. I started, life as a boy at the ago o£ 14 with nothin°- and am now, after 53 years of .pioneering work, winding up with nothing." '