BANKRUPT ARCHITECT.

New Zealand Herald, Volume LXVI, Issue 20254, 14 May 1929, Page 7

BANKRUPT ARCHITECT.

MONEY LOST IN LAND DEALS.

BEACHLANDS- AND • PIHA AREAS.

DISCHARGE TO BE ASSISTED. Considerable dealings in property •at Beachlands and Piha were investigated yesterday at an examination in bankruptcy of Richard William Kibblewhite, architect, of: Auckland, before the deputy-official assignee, Mr. V. R. Crowhurst. Mr. G. H. Wallace appeared for bankrupt and tliere was a large attendance of creditors. The schedule showed that £2373 was owing to unsecured creditors and £11,347 to secured - creditors. Securities were valued at £15,680, leaving a surplus from securities of £4333. Other liabilities amounted to £246, making the total liabilities £2619. Assets, comprising the surplus from securities, furniture and property, amounted to £4433, leaving a nominal surplus of £lßl4. In his statement bankrupt said that in 1922 he acquired the Beachlands Estate in an exchange. The property was subject to a first mortgage of £7500 and a second of £3OOO. Ho at once commenced to subdivide and road the property and later sold a half-share. Ho continued to sell sections under agreement for sale and purchase of his'half of the property and made money out of the transactions.

Purchase of Piha Estate. About the end of 1923 a small syndicate was formed, comprising himself and throe others. Ho then purchased the Piha Estate in his name, but on .behalf of the syndicate. The price was £12,090. A deposit of £ISOO was paid and a first mortgago of £10,590 was taken over by him. One of the members of the syndicate advanced £3OOO, for which he took a second mortgage over the land. A portion of this money was used to pay the deposit and legal expenses and the balance was employed for working expenses. Bankrupt said that the syndicate then proceeded to develop the Piha property and some thousands of pounds were spent. In the meantime ho continued to dispose of Beachlands sections and had rearranged' the finance by raising an overdraft of £4OOO with the Bank of New Zealand and, paying off the original mortgagees. The original syndicato continued to deal with Piha until 1925, when bankrupt bought the other three out. He then held both Piha and Beachlands properties in his own name.

"In the meantime the sale of sections, at Beaclilands had decreased, partly on account of the state of the market and partly because the place needed more loading," bankrupt added. "I carried on until March, 1927. At that time there was approximately £7600 owing to me for the balance of purchase-money in respect of the Beaclilands sections which I had .sold."

Sale to City Not Effected. Bankrupt said that ho let contracts for roading Beaclilands, incurring liabilities amounting to about £1350. The bank refused to advance him sufficient to discharge this and as a_ result he was very much embarrassed. He had been endeavouring to dispose of the Piha property to tho City Council, as it was then thought that tho council would purchase it' as a reserve. However, nothing eventuated. '

Ho kept up tho payments on tho Piha property as well as lie was able, but subsequently was in arrears, and after attempts to sell had failed he was compelled to hand back the property to the mortgagees.'

During the past two years bankrupt had exchanged a number of Beachlands sections for various properties about Auckland. At tho end of last year ho sold his remaining interest in Beachlands to a company called Beachlands, Ltd. Out of this sale tho company had paid him to date £750, a further sum. of £250 being payable this month. This money had been used/in paying off' his bank overdraft and arrears in rates. The balance of £250 was subject to a charge in favour of the bank. Unprofitable Exchanges. "The exchanges which I effected for Beachlands sections prior to disposing of the proved unsuccessful' and I found myself loaded up with a number of encumbered properties, which I could not get rid of," concluded bankrupt. "I attribute my bankruptcy to this fact and also to the fact that practically all ..the profits I derived from Beachlands were spent on the Piha property, which proved unsaleable."

In reply, to the deputy-assignee bankrupt said that his drawings had never exceeded £6 a week, even at" the most prosperous period. "Bankrupt's present position is duo to depression in land values," stated a creditor; "He' has always been prepared to do his very best for creditors. Ho has not been extravagant in any wav.-"

The assignee was instructed to facilitate bankrupt's discharge.