"SPOILED BY SUCCESS."

New Zealand Herald, Volume LXV, Issue 19889, 7 March 1928, Page 14

"SPOILED BY SUCCESS."

BANKRUPTCY OF BUILDER."

I START WITHOUT CAPITAL.

[ DEFICIENCY EXCEEDS £4OOO. "A man spoiled by success," was tho 'description applied by the official assignee, Mr. G. N. Morris, to Trevor Deane, builder and contractor, of Auckland, at a meeting of creditors yesterday. Mr. Beckerley appeared for bankrupt, and there were about 30 creditors present. The assignee said he had had little time to go through bankrupt's affairs, but they appeared to he most involved. The schedule showed £5282 owing to onsecured creditors and £949 to secured creditors. The securities were valued at £IOSO, • leaving an estimated surplus from securities of £lOl. The sum of £8592 was owing to partly-secured creditors, the value of the securities for this amount being £2749, leaving a deficiency of £5643. Other liabilities comprised £330

for protected and preferential claims, > making the total liabilities £11,305. The assets, comprising stock-in-trade, book debts," property, and the surplus from securities, amounted to £7122, leaving an estimated deficiency of £4183. In a statement bankrupt said ho commenced building operations in July, 1925, without any capital. About March, 1926, his solicitors informed him he was behind to the extent of about £2OOO, but, conditions improved, and between October of that year and March, 1927, he made £SOOO. Later he sold a number of sections, but this resulted in a loss. At tho last, Auckland Winter Show he had a stall and was so successful that he placed building contracts to the value of £41,000, subject to the granting of Government loans. Had he been given sufficient time to carry out these contracts he could reasonably have anticipated a profit of £3500. As it was, he not only lost the profit, but also the expenses incurred in obtaining the contracts. Bankrupt said the. greater portion of his loss was incurred through dealing in timber and he also lost through building too cheaply. A committee was sot up to go more fully- into, bankrupt's dealings. The assignee also intimated that at a subsequent meeting he would examine certain creditors under section 92 of the Bankruptcy Act, which made such examinations pnvate.