DISPOSAL OF OIL SHARES

New Zealand Herald, Volume LXI, Issue 18680, 9 April 1924, Page 12

DISPOSAL OF OIL SHARES

DECISION TO SELL. CREDITORS' INTENTIONS, ESTATE OF P. A.' HADLEY. With the object of realising certain assets in the bankrupt estate of Percy Arthur Hadley, company promoter, of Auckland, a largely-attended meeting of creditors was held under the chairmanship of the official assignee, Mr. W. S. Fisher, yesterday. The bankrupt,, who was present, was represented by Mr. Mackay. The petition had only been filed last Friday, stated the official assignee, and representations had been made to him urging the immediate calling of a meeting to consider the realisation of the assets. This the official assignee agreed to do, subject to the stipulation that no other business was transacted, as the heavy rash of bankruptcy work was fully occupying his time. The schedule of assets and liabilities, as road by the official assignee, showed that the total debts in the estate amounted to £5727, all of which was owing to 15 unsecured creditors. There were also two secured creditors, to whom £5200 was owing, this amount being guaranteed by securities estimated to be worth £14,250, leaving a surplus of £9050 to be carried to the assets side of the schedule. The total assets, including the £9050 mentioned above, amounted to £25,050, thus leaving ft surplus in the estate of £19,323. The assets chiefly comprised Taranaki oil shares and interests in Taranaki oil lands and machinery. Mr. Andrew Hanna, solicitor, who was tho largest unsecured creditor, said that considerably over a year ago ho obtained a writ of sal over the "bankrupt's property, including a quantity of shares in various oil syndicates and a Ben?, motor-' car. There were many delays before the sale was arranged, but it was eventually fixed for Friday last. Within ten minutes of the time fixed, however, Hadley lodged his petition in bankruptcy with the Supremo Court, and the sale had to be abandoned. He had heard various accounts of the value of the estate, ranging from £10,000 to £20.000. Continuing, Mr. Hanna said ho understood that the Taranaki Oil Development Company, in which bankrupt held 65 £250 shares, was negotiating in Australia for the sale of its assets. It was unwise, however, to await developments there, as nothing definite was known, and it was impossible to say what would be got out of a sale. Had the sale been allowed to proceed on Friday it was quite likely that there would have been some demand for shares. Of the 65 shares held by the bankrupt in the Taranaki Oil Company, 50 were assigned to the principal secured creditor, in security for a debt of £4500. He moved that prompt steps be taken to effect a speedy realisation of the assets. The motion was seconded.

Mr. C. G. Macindoe, one of the creditors claiming smaller unsecured amounts, said he had been acting as chairman cf directors for the Taranaki Oil Development Company while Mr. A, W. Donald was in Australia. Ho stated that it would be suicidal to realise on the oil shares while j negotiations were in progress in Australia. The company was at present considering an offer, and there was every reason to believe that a sale would be effected in a very short time. In that case the shares would be worth a considerable amount of money. To throw the 65 shares on the New Zealand market at this juncture would only jeopardise th© result of! the Australian sale.' Mr. A. H. Johnstone, representing one of the secured creditors, said it would be foolish to sell the shares in New Zealand until definite information was obtained as to the result of the negotiations in Australia. It.waa only a year ago, he said, since the company was offered £40,000 from an Australian concern. Tnat offer had been turned down, as additional money was wanted in royalty. That was an eloquent indication of the vain© of the shares. Mr. A. W. Donald was now conducting the negotiations in Australia, and if ho were successful it would be profitable for the estate. Mr. Hanna said that as to the value of the shares, he had already offered to dispose of his shares, worth £4000 odd, for £3000. Mr. Donald's trip to Australia he characterised as an " ephemeral quest." The official assignee said that if the meeting decided in favour of realising the assets, it would still be many days before the sale could bo arranged, and in the meantime definite news might be received from Australia. The motion was carried, the bulk of the interests voting in favour. The meeting adjourned until April 29.