BIG BUSINESS FAILURE

NZ Truth, Issue 1018, 30 May 1925, Page 6

BIG BUSINESS FAILURE

Kaye and Carter's Affairs Bank of New Zealand Acts. (From "Truth's" Christchurch, Rep.) Business circles m the Flat City got a shock recently when it became known that 'the Bank of New Zealand had placed the affairs of Kaye and Carter, Ltd., a prominent firm of merchants and exporters, m the hands of the receiver ;and" that some forni of voluntary liquidation, was to x follow. The drop m wool pi'ices m Britain is said to be the cause of the company's crisis. It has dealt, extensively m wool and meat for some time, and the failure is one of trie most unexpected and startling which Christchurch has seen for many years, and dpubtless other firms will be affected^ ", : • , „ .': An inf orriial meeting of ' cr ed itbr s •was held, at" which claims amounting to from £12,000 to £14,000 were men-, tioned. It .was said that the bank had a lien of £125,000, and that the company estimated that against that there , were assets amounting to £150,000. Mr. Gavin Anderson, ,a member of the firm of Gilbert Anderson and Co., London, for which Kaye' and Carter, Ltd., were South Island agents m meat operations, was present, and said that at a meeting of Kaye and Carter, Ltd., it had been decided to enter into \ some form of voluntary liquidation. •.'..-/.■•■ So far the actual deficit cannot be ascertained, and the whole business is complicated, with many issues involved. • ■'■■■" • When <JVTr. Albert Kaye died some years, ago the firm. ' of which he was a founder, was reconstituted. One of the shareholders then was Mr. Gilbert Anderson, since dead. The registered capital of the. company is £11,000, made up of the following £1 shares: The G.S.|. Investment , Co., Ltd., London, .10,998; J. •Smith Wilson (Christchurch), one ;■ and Andrew Pitcaithly (Christchurch), one. * • • '•■ One point mentioned by unsecui'ed creditors is concerned with the interpretation of "a red letter" or "blanket" clause m the Bank's lien. That gives security over unspecified assets. ■'/'■-■.■. It is widely known that the relationship between Kaye and Carter, Ltd., and Gilbert -Anderson and Co., Ltd. (London) is very intimate, but the list of sharehol der's of'"; the : latter. , is unknown here. Developments of the 1 crash may be expected very shortly.