MEETING OF CREDITORS

Otago Daily Times, Issue 21734, 27 August 1932, Page 17

MEETING OF CREDITORS

AN HOTEL-KEEPER’S ESTATE A meeting of creditors in the estate of Angus Murray MTvor, of Dunedin, hotelkeeper, was held yesterday in the office of the Official Assignee (Mr J. M. Adam), There were six creditors present, 1 The bankrupt’s statement showed; Secured creditors, £1558 13s lid (value of securities £1450); unsecured creditors, £4lB 19s sd; assets £SO (book debts, £l4l 14s 4d, estimated to produce £SO). The secured creditors are the Bank of New South Wales, £422 13s lid, and Wholesalers, Ltd., £1136, the value of the security being £1450. The principal unsecured creditors are: J. Samson and Co., £100; Thomsons, Ltd., £6O; R. Powley and Co., £56; H. F. Payton, £4O; Johnsons, Ltd., £25 7s, 8d; Sam Young; £24; Co-operative Dairy Association, £lB 14s 6d;J. A.‘ Ainge and Co., £l6; Carline and M'Leod, £ls 2s. The following statement was put in by the bankrupt: —I sold out of the Criterion Hotel in February, 1927, for £16,000, walk in, walk out. There was a first mortgage of £SOOO and £7OOO was lent on second mortgage, repayable by quarterly payments of £2BO, plus interest. I received in cash on settlement £1941 8s 4d. I went for a trip to England and Scotland, and on my return entered into business relations with R. H. Ingram and Company. On June 16, 1928, I advanced them £350 and a little later bought a third share in the business, which was then formed into, a private limited company. In connection with this transaction, I borrowed from Messrs J. Speight and Co., Ltd., £ISOO against my securities over 'the Criterion Hotel. On December 22, 1930, I borrowed on the same securities £ISOO from New Zealand Breweries, Ltd., to enable me to purchase the lease and the furniture of the Gridiron Hotel. This mortgage was to be paid off by quarterly payments by M'Lachlah (Criterion Hotel). From the time: I went into the Gridiron Hotel business went back, the rent was too high, and economic conditions got worse. Meanwhile I had to give the Bank of. New South Wales security over advances to the firm of R. H. Ingram and Co., Ltd. I mortgaged to the bank a debenture I held from R. H. Ingram and Co., Ltd., and also gave them security over part of my security from M'Lachlan. The business of Ingram and Co., Ltd. kept going back, and finally the bank put in a receiver. Business at the Gridiron kept falling off, and eventually 1 had to make an arrangement with the landlord by which he took back the hotel, and took over stock and furniture at valuation. The balance due to me over the transaction was £344 0s 3d, and this was paid to New Zealand Breweries, Ltd., who had taken security over the Gridiron furniture when making the advance. Part of M'Lachlan’s quarterly instalment on May 12 was also paid to New Zealand Breweries, Ltd., and the balance of £llO was paid to Wholesalers. Ltd., who had a second charge on the Gridiron furniture. I received practically nothing. I attribute my failure to the fact that the rent of the Gridiron Hotel was too high, and that I could not get back my old connection as I thought, and to my guarantee of the firm of Ingram and Co., Ltd. I have no assets but the book debts, and I can make no offer. in answer to the asignee, the bankrupt said he paid £2B a week as rent for the Gridiron Hotel, with ground rent, £lO5 a year. His weekly takings all over the building at the start averaged from £l3O to £l6O, and fell to about £125. The secured creditors were now realising the property. Mr P. W. Stabb (Samson and Co.) said that Mr MTvor had been 1 a worthy citizen, and it was very regrettable to his friends that he was in a hopeless position to-day. The unfortunate circumstance was that he had started with Ingrams in a business he knew nothing about. Further, Mr MTvor’s health had not been of the best.