OIL VENTURE DISPUTE.

New Zealand Herald, Volume LXI, Issue 18867, 15 November 1924, Page 11

OIL VENTURE DISPUTE.

COMPANY TO BE WOUND UP

A petition for the compulsory windingup of the Associated Oil Corporation, Ltd., was heard by Mr. Justice Stringer in the Supreme Court yesterday. The petition was brought by the British Petroleum Development Company, Ltd., acting by its liquidator, Mr. A. E. Warnock. Mr. Ziman appeared for the petitioner, and Mr. A. Hanna represented Messrs. A. W. Donald and W. M. Commons, two of the directors of the Associated Oil Corporation.

Mr. Ziman said the Associated Comfany was the narent company, the British etroleum Company being subsequently formed with the same directorate. The British Petroleum Company incurred considerable debts to workmen and others, and then went into liquidation. The liquidator and the directors of the Associated Corporation entered into an agreement, ratified by meetings called by an order of the Court, whereby the Associated Corporation was to settle, on certain terms, all the debts . of the British Petroleum Company, including wages. Instead of settling the debts under the agreoment, the directors of the Associated Corporation arranged to purchase the property of the Associated Corporation from the mortgagee, and then applied to the registrar to strike it off the register. The object of the present petition, continued Mr. Ziman, was to have tho transactions investigated, and to prevent the Associated Corporation being struck off the register until it was seen whether anything could be recovered for the creditors of the British Petroleum Company. Mr. Hanna pointed out that the directors of the Associated Corporation had incurred large liabilities, and had expended considerable .sums in an endeavour to keep tho company alive, and were of opinion that tho corporation would not realise anything over the amount of the mortgage. He could not see any object in having the corporation wound up. The matter was tho subject of further legal argument. His Honor, by consent, made an order for the Associated Corporation to be wound up by tho Court, all questions of costs being reserved. Incidentally His Honor remarked that ho supposed if some oil came along everybody would be happy.