AN INVOLVED ESTATE

Otago Daily Times, Issue 22324, 26 July 1934, Page 11

AN INVOLVED ESTATE

PROPERTIES NOT VALUED ASSETS PRACTICALLY WORTHLESS. (Pee United Press Association.) AUCKLAND, July 25. "This is one of the most involved estates I have ever had to deal with," said the official assignee (Mr Watters) at a meeting of creditors in the estate of the late Arthur Cleave. The official assignee was appointed by the court last February to administer the estate, the order being made on the petition of a creditor. Mr Watters said that the last meeting of creditors had been held on March 8 when Messrs J. B. Donald and J. ,G. Restell had been appointed to act with him as a committee in investigating the position. There had been no full statement of assets and liabilities, but it had been suggested then that the sceured creditors should not attempt to realise immediately on their securities. The committee had prepared a lengthy report giving details of the present position of the estate, but owing to its size the report had not been circulated among the creditors. It would, however, be available for inspection by them. Mr Waiters said that there was a total of 30 claims against the estate aggregating £20,845. He detailed several of the larger claims and also read out a list of guarantees under which the estate might be liable. Ten claims had been received in respect of guarantees totalling f 18,955. this figure being included in the total of £20,845. Applications .for extensions of time for putting in claims had been received in several instances in connection with the guarantees. It was quite fair to say that practically all the claims were in respect to guarantees. The position of unsecured creditors was still uncertain at present. The only free assets were certain shares, mostly of no value, together with debts due to the estate totalling about £SOO. " I suggest that a small committee should be appointed with power to act in dealing with all securties," Mr Watters continued. " There has been no valuation of the properties in the estate, and in some cases it may be better to abandon and in others to allow mortgagees to enter into possession in the meantime." Mr Watters added that the whole position was very involved. There was a case of the Safe Deposit Buildings. The total amount owing to the Public Trustee under the first mortgage was over £28,000, and in addition there were other mortgages, some of them taking the form of collateral security for certain guarantees. Arrears of rates, land tax, and betterment payments totaiied about £2OOO. A creditor: It is perfectly clear that the free assets are practically worthless. Mr Watters: That is so. Again, many of the properties are so covered with blanket mortgages that it is difficult to arrive at the true position. "No Government valuations of the buildings in the estate have been obtained, Mr Watters continued. "Even the special valuations made to-day would only be matters of opinion, and the Government valuations made some time ago might mislead rather than assist." The meeting finally appointed Messrs Donald and Restell to act as supervisors with the official assignee in dealing with the estate.