IN BANKRUPTCY

Manawatu Times, Volume LIV, Issue 6812, 16 January 1929, Page 2

IN BANKRUPTCY

MEETING OF CREDITORS. Creditors in the estate of Leo Sigismund Cimino, jeweller, of Palmerston North, bankrupt, met yesterday, the D.O.A. (Mr. C. E. Dempsy) presidry; Bankrupt said he was as yet unable to present a personal statement as there wero no figures to go oij. He had a property at Eastbourne (Wellington) valued at about £2500 on which there was a first mortgage of £llOO and a second mortgago of £I4OO as guarantee for bank overdraft.

Mr. W. Rutherford served on behalf of Mr. C. P. Nash, (a creditor) a notico reversing an agreement to sell certain stock in bankrupt’s shop and cancelling an agreement to lease. The D.O.A. remarked that several of the creditors were hoping that bankrupt would be allowed to carry on. However, Mr. Nash’s attempt at foreclosure put a different complexion on the situation anti he would have to look into the legal aspect of the position.

Mr. Blanc, of Auckland, another creditor, urged that a coramittco be set up to assist the D.O.A. in carrying on the business for six months with Mr. Cimino as manager on*a salary that would give him a living only. Mr. Cimino would have to make that sacrifice.» All moneys received should be paid into a separate account and no purchases mado except when absolutely necessary and then only with the sanction of the committee and with cheques signed by the D.O.A. and one member of the committee. Mr. Blanc considered this would give Mr. Cimino a chance to pull up and the position could be reviewed in six month's time. Meanwhile a purchaser could be looked for and the creditors could see what could be done with the business. The assets as far as could be estimated were worth £5,595 and creditors wore owed £4,090. Mr. Blanc added that his experience had been that creditors received a better return from a business managed in the way he proposed than from one sold up by the D.O.A. Further, they would be helping a man who had gone under and that was what ho would expect himself if he was in bankrupt’s position.' In answer to the D.0.A., Mr. Rutherfuid stated that ho could not say whether Mr. Nash would agree with Mr. Blanc’s proposition—it would need consideration.

In answer to Mr. Rutherfurd, Mr. Blanc said, he considered all the creditors should be paid pro rata including Mr. Nash. The latter should be willing to- help that far. . The meeting was adjourned at this stage to enable creditors to give consideration to Mr. Blanc’s proposal.