CREDITORS ACCEPT 5/ IN £

Evening Star, Issue 19023, 19 August 1925, Page 11

CREDITORS ACCEPT 5/ IN £

RIACH MID H'LENKAK'B POSITION The creditors of Messrs Riach and M'Lennan’s Co-operative Association, Ltd., in liquidation, met yesterday afternoon. Many were present. Air W. L. Moore represented the company and Mr C. J. Payne watched proceedings on behalf of the Official Liquidator. The following is the list of creditors present, with the amount of their claims: —Mrs Robertson (Mr Tregear), £Bll Is; J. E. Butler, Ltd. (Mr Vanes), £52 Ss 7d; J. Shackell and Co. (Air Ward), £2O 17s; John Faulks (Mr Forrester), £300; Robinson Bros., Ltd. (Mr H. A. Robinson), £53 3s 3d; Wright’s Commercial Agency (Mr AE. Wright), £1 2s 6d; AFLachlan and Wright, Ltd. (Air AFLachlan), £3 6s lOd; New Zealand Hardware Company, in liquidation (Mr Marshall), £43 14s 4,d; Guthrie, Bowron (Mr Chadwick), £1 7s; Ross and Glendming, Ltd. (Mr Martin), £B4 7s 6d. The following creditors present at the meeting did not lodge particulars of claims:—Messrs A. and T. Burt, Ltd. (Mr White), Queen Cycle Works (Mr Little), 1 Evening Star ’ (Mr Smith), F. Meenan and Co. (Air Ball), Dunedin Furniture Company (Alessrs Nelson and J. M. Gillies), D. Forrester and Co. (Air D. Forrester), Newberry, Walker, and Co. (Air King), Co-opera-tive Fruitgrowers (Air J. H. Waighti, J. J. Alarlow (Air Marlow) .Niven and Co. (Air Brickell), Marine Department (Captain Fraser), Coulls, Somerville, and Wilkie (Air Robertson), and Sargood, Son, and Ewen, Ltd. (Air Lindley). Kenneth AFLennan submitted a statement of the affairs of the company. The Official Liquidator (Air E. W. Cave) said that lie had gone carefully into the firm’s affairs, and he found that the Commercial Bank of Australia had had a debenture issued for the amount of the company’s overdraft, giving security over the company’s assets. These had since been sold, so the bank’s position was secure. The only possibility of any asset for the creditors lay in an equity on the company’s lease on property in Castle street, or in an equity on the lease on the present business premises. The firm’s liabilities amounted to nearly £3,000. Air Payne said that the whole business had been in an absolute muddle for some years. AFLennan had been either a knave or a muddler. “ I think he has been a muddler,” said Air Payne. The only possible asset was the leasehold on the firm’s premises in Stuart street, which had five years to run. However, he did not think that would prove a very valuable asset. When pressed by the bank, M Lennan had given an order of £250 on the lease, reducing its value by half. Through the receiver, the bank had sold the assets of the estate to Alessrs,, Laidlaw and Gray. Air Payne said that he and the official liquidator had thought there would be a surplus for the creditors, but the more they had gone into the affairs of the firm the less there appeared to be. The receiver had sold the assets at a sura which covered the firm s indebtedness to the bank, so the latter was now satisfied, and was out of it. Several times since the liquidation proceedings commenced he had been approached through Air Aloore, the company’s lawyer, with an offer of a compromise. He (Mr Payne) was not agreeable to any conipromise till a definite sum had been offered to the creditors. However, an offer had been made that morning to pay _ the expenses of the proceedings, and in addition os in tho £ on all proved claims on the estate. If the creditors accepted that offer the matter would then rest with the judge for his approval or rejection. The payment of costs and the 5s would equal a sum of about /s in the £. ii the' creditors were willing to accept os in the £ Mr Aloore, on behalf of relatives of AFLennan, would arrange ior the payment of that amount. __ . Air W. L. Moore said that the os in the £ would be 5s clear to the creditors. Three gentlemen were finding so™ 3 hundreds' of pounds in order that this might be done. ■ Air Payne indicated that if the proceedings went on it would be an impossibility to pay all the expenses as well as 6s in the £. Air Lindlcy moved—“ That the oiler of 5s in the £ be accepted.” Air J. J. Alarlow, seconding the motion, said that it was the only chance of the creditors getting anything. Air Gillies asked if AFLennan had received a quantity of consignment goods which he had sold. Air AFLennan said that he had told Air Aloore that morning that he would try to pay for those goods. Mr Aloore explained that M Lennan had not converted the money from that sale to his own use. The company received the benefit of those assets. AFLennan said that the whole proceeds had been paid into the company s account. They were shown in the company’s books. Air A. E. Wright agreed with the motion. It was unfortunate for the small creditors that the Companies Act enabled the bank to secure a debenture over the assets. In the circumstances the offer of os was a very good one. Perhaps AFLennan’s methods had not been what they should have been, but he spent very little money and had no vices. A considerable amount of credit should be extended to him on that account. , . , The motion was then carried unanim<Mr'Payne pointed out that before the money was paid the matter would be brought before the judge. The. amount would be paid as soon as the judge had confirmed the offer of 5s in the £ on the proved debts.