Box Building Venture Fails

Horowhenua Chronicle, 24 May 1933, Page 6

Box Building Venture Fails

SLUMP AFFECTS BUSINESS A meeting of creditors in the bankrupt estate of Digby Eric Perrett, formerly of the firm of Digby Perrett Company, Ltd., box-timber makers, was held at Wellington yesterday. The statement of accounts showed: Amount owing to unsecured creditors, £34 6s Id; owing to secured creditors, £IO9O 19s 9d; less estimated value of securities, £1100; surplus to contra, £9 Os 3d; total debts, £1125; deficiency £25 5s 10d.

The principal creditors were G. Haggitt, Bank of Australasia, Palmerston North, £490; General Finance, Ltd., Wellington, £279 3 s lOd; Rev. A. C. Swainson, Plimmerton, £300; Union Bank of Australia, £2l. In his sworn statement bankrupt said that in order to make clear his present position it was necessary to refer to a disastrous sawmilling venture at Bulls some years ago, of which he gave particulars. Latterly he started a factory in Wellington for the production of timber for concrete-box-ing and for other small boxes. That business increased steadily. He also opened a branch at Christchurch, but after six months’ operations he closed it down. The Wellington business continued to increase, and in order to cope with it the Digby Perrett Company, Ltd., was formed. The business prospered until 1930, when, owing to the adverse Canadian tariff and the slump, an unfortunate change of business occurred. In 1932 the Union Bank of Australia exercised its power as debenture-holder and appointed a receiver. The receiver dispensed with bankrupt’s services on the ground that the company’s stock was in process of liquidation. Since then, his earnings had been negligible. He had no prospect of being able in the near future to make an offer to his creditors.

In reply to questions asked by the Official Assignee and by creditors, bankrupt said he received £lO a week when acting as manager of the company. Out of that money he paid off some of his back debts. At present he was unable, as he had stated, to make any offer to his creditors. The assets in the estate were of considerable value', but he was unable to assess their worth. At the time the Union Bank exercised its power as debentureholder the assets ran into about £SOOO.

The Official Assignee: On the face of it there is nothing in the estate. It is difficult to realise assets at the present time. It is necessary that, bankrupt supply to the Official Assignee all books and documents relating to the estate. This has not yet been done.

Mr Pocock (counsel for. Perrett) said that bankrupt lived at Palmerston North, and had had no opportunity of knowing what he had to produce in the way of documents and information. The necessary information would be supplied. The Official Assignee: I will get all the information I can in regard to the estate. In the meantime the meeting will be adjourned, but, as I have said, there does not appear to be anything in the estate.