BANKRUPT INDENTORS.

New Zealand Herald, Volume LXI, Issue 18680, 9 April 1924, Page 7

BANKRUPT INDENTORS.

DEFICIENCY OF £4826 SHOWN. LOSS OP STOCK BY FIRE ASSISTANCE BY RELATIVES The business affairs of Frederick H. Saunders and Stanley G. Langdale, manufacturers' agents, were investigated at a meeting of creditors held at the office of the official assignee yesterday. Mr. W. S. Fisher presided. "Bankrupts' schedule showed the sum of £4922 owing to unsecured creditors and £204 to secured creditors. The unsecured assets totalled £96, leaving a nominal deficiency of £4826. Langdale did not appear, it being explained by Saunders that ho had retired from the business in July last year, although the partnership had not been legally dissolved. He did not think Langdale was financially able to meet any claims in the estate.

In a statement, Saunders stated that he and Langdale started in business in November, 1919. Business was good until the slump of 1921. but in the following May they found they could not meet their obligations, ao called a meeting of creditors, who accepted 10s in the £ on bills covering a period of 18 months. These bills were duly met, although it involved a sacrifice of stock. In June, 1922, a fire destroyed a considerable quantity of stock. Since then there had been difficulty in getting goods from London, and many orders had been cancelled owing to deliveries. They bought from local warenouses, pending the arrival of indents from London, but summonses were issued by various firms and the serving of two distress warrants left bankrupt no option but to file. He was a married man with two children, without business or employment, and. could make no offer to his creditors. Examined by Mr. Fisher, Saunders stated that relatives of his partner had advanced £1500, which had gone to make up the 10s in the £ paid to creditors. After the fire, these relatives came to the assistance of the firm with another loan of £1000. Bankrupt did not know the total amount of indebtedness at that time. Langdale had had a rough statement drawn up, but had not kept a copy of it, although Saunders knew they were about £1000 behind. The business showed a loss of £700 a year ago, continued Saunders, in addition to the £1000 received, and it had gone back another £200 during the last. 12 months. Langdale's relatives would not have pressed for tho payment of the sums advanced, requiring only the interest. The money really represented Langdale's portion of their estate. _ The meeting was adjourned in order that legal opinion might be obtained whether a certain firm should be required to refund moneys alleged to have been paid to it in excess of the proportion received by other creditors, who had accepted a composition.