BANKRUPT PARTNERS

Evening Post, Volume CXIV, Issue 97, 21 October 1932, Page 9

BANKRUPT PARTNERS

DEFICIENCY OF £1371

NUMEROUS CREDITORS

A deficiency of £1371 was shown in a statement presented at a meeting to-day of creditors in the bankrupt partnership ofl William Henry Prior and George Hepburn, . trading as Poueke Bakeries. Mr. S. Tansley, Official Assignee, presided, and eighteen creditors were represented. The partnership, statement showed the total debts as £1600 12s (unsecured' creditors £1479 4s 4d) and the total assets as £228 las 2d, leaving a deficiency of £1371 10s lOd. ■ The principal unsecured creditors were Burch and Co., Ltd., £223 11s 9d; Wellington District Poultry Farmers, £185 16s 4d; Baldwin and Co., Ltd., £175 12s; Bank of New Zealand, Ltd., £103 10s lOd; J. C. Hutton, Ltd., £99 lls lOd. . • Hepburn's financial ■ statement revealed a deficiency of £47q 15s Gd, the principal unsecured creditor being the Northern Roller Milling Co., Ltd. (Auckland), £479 0s Oil, Prior's personal deficiency was shown r~. £8 19s ad. Acco: .ng to their sjvorn statement, the bankrupts joined partnership in Hepburn's Molesworth street shop in May, 1925. No difficulty was experienced in paying debts and each drew £5 weekly from the business.' The opening'of two branches in the city was decided upon, and the partnership prospered until early in 1931, when the sales from the three shops began1 to fall off owiug to the depression and keen competition. An unsuccessful effort was made. to sell' the Courtenay place business. In 1931 Hepburn withdrew from the partnership and went to Auckland, and Prior paid him £200 in cash and agreed to pay a balance o£ £300 by instalments. Hepburn returned to the partnership early in 1932 and the balance outstanding was cancelled. The bankrupts attributed their failure to the opening of the branch shops-and considered that with the Molesurorth street shop" alone they could have paid their way. Since May, 1931, neither had drawn more than £2 weekly from the business. The action of the Official Assignee in selling the Molesworth street business for £125 was approved. Mr. Tansley .asked why there were so many unsecured creditors. Counsel for the bankrupts, Mr. H. N. Eobieson, said that the wholesalers had all supplied different classes "of goods. T-he deficiency on book values was probably not more than £300; the actual deficiency shown was ■ caused by forced realisation. A creditor: I understand Mr.. Prior has said he intends to start business again in about four months. Where is the money coming from? Prior denied having made the statement. "I could not possibly start anything," he added. During the first two years of the partnership he and Mrs. Prior had each drawn £5 weekly from the business, and thereafter £2 and £1 respectively. Hepburn had drawn £5 a week before going to Auckland. ASSIGNEE COMMENDED. One of the principal creditors remarked that he had understood there were only a few main creditors, and it had come somewhat.as a shock to find there was such -a large number. The Official Assignee was to be commended on his services in the creditors' interests. The bankrupts were asked to prepare a detailed statement of their transactions since the beginning of 1931. The Official Assignee said that he thought there would be about £100 for the unsecured creditors'. Prior said that he first knew he was in difficulties just before his partner left for Auckland. _ Mr. Tansley: Why did you go on trading if you knew you could not pay your debts ? _ A creditor: Everything seemed to be m the hands of Mrs; Prior. "Were the full proceeds from ,the sale of goods supplied to the branch shops accounted for?^- was another question. An answer in the negative was given, and a creditor remarked that he thought that largely explained the bankruptcy. It was agreed that the creditors were entitled to more information than' was available, and that Mrs. Prior and the accountant employed by the partners i should be present at the next meeting a \ week hence. - |