COACHBUILDERS’ FAILURE

Hawera Star, Volume XLIX, 15 February 1930, Page 5

COACHBUILDERS’ FAILURE

ELTHAM BANKRUPTCY. MEETING OF CREDITORS. A meeting of creditors was held at Eltham yesterday in the 'bankrupt estate of AV. M. and R. Thomson, of . El-. tham, coachbuilders and car painters; Mr K. S. Sage, D.0.A., presiding. As bankrupts possessed no private means and could make no offer in liquidation of their liabilities, which amounted to £1409 9s lOd, as against assets totalling £1380,. it was decided by the meeting that the question of disposal of the business as a going concern be left in the hands of the Deputy Official Assignee, Avith power to atoept an offer ay hi eh had already 'been made privately to bankrupts, should he dleem it advisable. Unsecured debts amounted to £593 7s 9d, the principal creditors being: “Taranaki Daily News” . £3l. 6s 9d> Farmers’ Co-op, £3l, -AA 7 . AViggms, Ltd. (AVellington) £45, G»AtcGlashan (New Plymouth) £25, O. and A. Odlin, Ltd, £2l 16s 10, Egmont Box Company _ £45, AV. C. Clement £45." " - --- The secured creditors were the State -• Advances Superintendent £4BO, Ailbert Hurrell £4lO, and Eltham Borough' : Oovincil £26 2s Id. Bankrupts were represented by Air A. ' Ohrystal. who also appeared for two - creditors. , According to their statement, bankrupt took over the business from Mr A. Hurrell on November 1, 1927, paying for the buildings, plant and goodwill-a-sum of £4OO in cash and taking over a State Advances mortgage for. £458 11s 9d. ;and the balance Avas secured A to Air Hurrell by a mortgage of the lands and buildings for £530 collator- ; ) al.lv secured by a mortgage over a certain amount of the chattels. The instalments of principal and interest payable to the State amounted; to ' about £44 a year, and they agreed to, pay £IOO -per annum to Air Hurrell in reduction of his principal in addition to the interest on it. They'also took over the staff that had been, employed by Air Hurrell, but after emrffoyiffg them for some time they found that the business was not paying, but kept the staff on too long. To keep- -up payincuts on the mortgage they got behind „ with their trade accounts. They con- / tinued to get further behind until August of last year, when they were getting into, pretty deep water. _ They then -■ considerel that they could still carry on and make the business pay if they could get relief from the pressure that was; being brought to .bear on them. AVith that end in view they instructed their ;*, solicitor to make an offer to the creditors to pay their debts pro rata by a certain sum per month. This was ac-. : cepted by a large number of the' credit-..; ors, but they could make no agreement with the Farmers’ Co-op., which had a judgment, summons order.. .Coifo sequently they Avere forced to provide money for that and codld not carry out arrangements with the other creditors. . From that time on they endeavoured to pay the most pressing creditors in the hope that they could carry on. and pay everyone in full. Ultimately pres- ’ sure became so strong that they _ ivere compelled to call a meeting of creditors.This meeting recommended that -they should file, which ivas done. ;; They, attributed their non-success to lack of capital, the whole of their capital being; '-f. • sunk in the cash payment in the' .first venture, and from then on they had too large an overhead expense to ‘ meet. . . - JAr It was stated by Air J. L. AVeir;-who appeared for an unsecured! that the meeting of creditors held iff.the office of bankrupt’s solicitor, after go- : ing fully into the position, could see no way out of things but filing, although the creditors as a whole were not pleased with the manner in winch .bank-,.... rupt® had treated the whole question of their indebtedness. ” Considerable discussion took place as to the items in a bill of sale in favour of the original vendor of the business, and in view of the doubt that existed ,x a in the minds of several creditors as to the position it Avas resolved that the Deputy Official Assignee obtain opinionas to whether the bill of sale applied to all machinery under discussion-or .-to a portion only.' The 'resolution also gave the Derm tv Official Assignee power to. ascertain whether under the <aroaafo stances tlm bill of -saile complied with t the provisions of the Chattels Transfer; ~ Act, s'