Meeting of Creditors.

Oamaru Mail, Volume XXI, Issue 6531, 15 April 1896, Page 3

Meeting of Creditors.

C. W. YALLANGE

A meeting of creditors in the estate of C. W. Yallange was held in the office of the Deputy-Official Assignee yesterday afternoon, when there were present, Messrs Montagu, J. L. Allan, M'Douall ([National Crump (Dr F. Ormond), Sievwright (Frew and Glen), Lee (Hislop and Creagh). The Deputy Official Assignee stated that there was nothing in the estate. Dr Ormond had received the proceeds of the sales of office and household furniture. He had expected Dr Ormond's representative to have made an offer to the creditors, as it was pretty certain that the amount received from the sales would be recoverable from Dr Ormond. The amount would be about L 195.

It was stated that outside the National Bank's claim the total of the claims amounted to nearly L2OO, and Dr Ormond was guarantor to the National Bank for the amount of the Bank's claim, aggregating L 525. Mr Crump moved : That this meeting fully endorses the action taken by Dr F. F. Ormond in realising portions of the estate to the best advantage, and also hereby ratifies and confirms all payments made by him, as per statement handed to the Deputy Official Assignee, and instructs the latter to make any debit balance owing by the estate thereon a first charge on the same after first paying the expenses of adjudicating debtor a bankrupt and the initial expenses of the Deputy Official Assignee's office. The Deputy Official Assignee questioned the legality of Mr Crump moving a motion on behalf of Dr Ormond, seeing that Dr Ormond's proof of debt was not in in time. Dr Ormond's proof of debt was disallowed.

Mr Lee said it would be necessary for Dr Ormond in order to validate his proof to move for the sanction of the Court, and the Court might not deem it advisable to validate the claim.

Mr M'Douall said that although he represented the Bank he felt in duty bound to move the resolution in Dr Ormond's interests. He accordingly moved it. Mr M'Douall pointed out that if the estate bad been managed by the Deputy Official Assignee the creditors would not have got any more. Mr Sievwright said the creditors had been led to believe that Dr Ormond was aoing to pay them all 20s in the £, and if Dr Ormond had not handled the estate at all there would have been a dividend to those creditors who had not now received a penny. Creditors asked if there would have been more money in the estate had it been administered by the Assignee. The Assignee, looking through the amounts paid out, said that there were some L 67 paid out by Dr Ormond that he would not have paid as they were certainly preferential claims under the Act. Besides this there was the value of the furniture, Lll3, which Dr Ormond had handed over to Mrs Yallange, he contending that it was her private property. Mr Lee suggested that the estate be offered to Dr Ormond for a fixed sum, say 10s in the £. The business would not be a pleasant one to go into Court with. In reply to a question, the DeputyOfficial Assignee said that it would take L 5 5s to take the estate into Court for the purpose of compelling Dr Ormond to refund the money received as the result of sales.

Mr M'Douall said he could not sanction such a course as that with any money belonging to the Bank as a creditor. The Official Assignee said that he might be able to realise sufficient from the book debts. He could not refuse the resolution proposed by Mr M'Douall, but would decline to act upon it unless the other creditors approved. The resolution was practically Dr Ormond's. The Deputy Official Assignee said he had received a letter from Dr Ormond (dated October 26th), in which he stated that as some of the creditors were threatening to put a bailiff in the house and store, and as Mr Vallange was absent, he (Dr Ormond) deemed it advisable to send an agent to watch his interests, and Dr Ormond assumed control pending an inquiry. A meeting of the large creditors was called. It was then Dr Ormond's intention of paying all the claims either in full or to make a substantial composition according to the amount of them. Dr Ormond then went on to realise the estate as if it were in bankruptcy. Realisation progressed, but his intention of paying the creditors a fair compensation .had been thwarted, and failing to obtain satisfaction, he had felt it necessary to place the estate in bankruptcy, in order to protect all creditors alike. Further, Dr Ormond had admitted that he had paid some preferential and trust claims. Mr Sievwright thought it would be an easy and satisfactory solution of the trouble if Dr Ormond were offered the estate on payment to the creditors of 10s in the £ clear of all expenses. Outside the bank there appeared 20s in the £ to the other creditors. Messrs Montagu and M'Douall expressed the opinion that Dr Ormond's action throughout had been in good faith. The Assignee : But, unfortunately, it has not come out in the interests of the creditors. Mr Montagu moved, seconded by Mr Allan, that the Deputy-Official Assignee write Dr Ormond and try and arrange a settlement, and the meeting adjourned for about a week to receive report. This was carried, and the meeting terminated.