BUILDER'S BANKRUPTCY.

New Zealand Herald, Volume LX, Issue 18299, 16 January 1923, Page 9

BUILDER'S BANKRUPTCY.

UNPROFITABLE CONTRACTS. LACK OF CAPITAL CONTRIBUTES. The business transactions of a bankrupt builder, Herbert Pearce, Mountain ViewRoad, Morningside, were investigated at a meeting oi creditors held at the official assignee's office yesterday. The unsecured debts amounted to £792 13s, and the assets were valued at £547 4s lOd. The sum of £175 was due to a creditor who held security valued at £375. In. his statement, bankrupt said he started business in August, 1921, and was first in partnership, and latterly on his own account. He had completed 10 contracts. In March, 1922. trade became very slack, and it was difficult to obtain reasonable prices on account of the keen competition. •As a result,, he contracted for work which he could not make pay. Minor factors which contributed to the bankruptcy were loss of discounts due to lack of capital, increase in cost of material after signing contracts, delay in delivery of material, and in at least- one case, theft of timber from the job. In reply to the official assignee, bankrupt said ho kept no account of his transactions other than notes as to expenditure. He did not realise he was insolvent until ho called a meeting of creditors on December 13. The official assignee, Mr. W. S. Fisher, drew attention to the fact that the validity of a lien taken out by the largest creditor would have to be tested in Court before tho estate could be settled, another creditor stating that his firm also had registered a lien! It was decided that the matter should meantime be left in the hands of Mr. Fisher, who was authorised.. to make arrangements for ,the sale of property in Mountain View. Road owned by bankrupt. '■ ■ i ■ m—