UNUSUAL BANKRUPTCY.

New Zealand Herald, Volume LXVI, Issue 20228, 12 April 1929, Page 14

UNUSUAL BANKRUPTCY.

COMPANY MANAGER'S CASE.

RESULT OF LIQUIDATION

CREDITORS SYMPATHETIC

"This is not an ordinary bankruptcy," said the official assignee, Mr. G. N. Morris, yesterday, when investigating the affairs of James Tombs, company manager, Auckland (Mr. Finlav). The assignee added that as far as he could see there was nothing to be said against bankrupt, who intended to apply for his discharge at tho end of two months. Bankrupt said his failure was a direct result of the. voluntary liquidation of James Tombs and Company, Limited, of which he had been manager. Mr. L. B Gilfillan appeared for the liquidator.

The claims of unsecured creditors amounted to £1630, and against claims of £1239 by secured creditors there were securities estimated to produce £I6OO. The surplus from securities and other items mado tho total assets £431, leaving a deficiency of £1149.

Bankrupt said that James Tombs and Company, Limited, was a private company wil h two other shareholders besides himself, Mr. A. C. Cooper and his brother, Mr. Sydney Tombs. 110 himself hold 40 per cent, of the share capital. 110 drew £8 13s 2d a week as wages, and as ho was much "on the road" selling cars he drew considerable expenses. This account was not adjusted before tho company went into liquidation, and so the liquidator was enabled to get judgment against him for these alleged drawings as a personal debt.

Even when liquidated, the company was solvent, as it had assets worth £9OOO more than its liabilities. The company liquidated only because Mr. Cooper wanted to go on his farm, and Mr. Sydney Tombs wanted to go into the picture business exclusively. His personal debts were negligible, and ho proposed to pay them as soon as he could, 110 had been out of work for 12 mouths, but was now in a position earning £7 a week. The great bulk of tho claim against him was for travelling expenses. The assignee said tin; bankrupt'!, private debts amounted to some £25. He had 1000 shares in the Kawarau goldmining scheme, but they were worthless. Ho had been forced into his present position by tho liquidator of the company. Creditors present expressed their sympathy with tho bankrupt, and their willingness to facilitate his discharge.