IN BANKRUPTCY.

Temuka Leader, Issue 2166, 21 February 1891, Page 2

IN BANKRUPTCY.

An adjourned meeting of creditors of Mr Byrne Bayley, of Moana, Geraldine, was held on Thursday, There were present —Messrs Hawkins (Bank of New South Wales, Geraldine), M White (N.Z.L. and M.A. Company), J A Inglis (C.F.C.A.), J Mundell, R H Pearpoint, J Hay, < J ¥ White, H B Webster, M J Knublev (solicitor for Mrs Bayley), F W Smith (solicitor for Mr Mundell), and W Kinnerney (for Messrs Perry J and Perry, solicitors for the Deputy Assignee). ; ' The Deputy Assignee re&d a letter from Mr LeCren, manager for the New Zealand Loan and Mercantile Agency Comyany, demanding that all securities should be strictly inquired into, and the bankrupt submitted to - a public examination. An opinion was read from Messrs Perry and Perry to, the effect that a mortgage of stock and crop held by the Bank of New South Wales, and a bill of sale to Mr Mundell were invalid as against the assignee, and that the sale of a certain lease by Mr Mundell was voidable, and should be void as it entailed a considerable loss to the estate. Several of those present who professed to be conversant with the facts, declared that the opinion was worthless as it was largely based upon inaccurate statements made by the bankrupt, Mr Hawkins made an offer on the part of the bank, to reduce their opea claim to £SOO on condition that their securities were not impeached. The bank believed their securities unassailable, but made the offer to simplify matters. . Under this offer the bank would" take over the Moana property and balance of stock as at. £5900. The additional claim for £SOO was stated 1 to be very much reduced from the amount actually due to them. After a long discussion of the offer a resolution was passed authorising the Deputy Assigaee to settle with the bank on this basis:—The bank to prove for £SOO but to receive no dividend thereon until other proved ! creditors have received 10a in the £; the bank then to take the surplus up l to 10a in the £on its said claim; any further nurplus to be divided among all the creditors including the bank; on this being agreed to by the bank no steps be taken to impeach its securities, The resolution was proposed by Mr : Webster and seconded by Mr Pear- [ paint and carried. Mr M White voted [ against it, saying he would like 'to t have further particulars as te what , the estate would realise. In reply jto [ this remark it was stated that the > bank's oiler was a good figure for it. Mr Mundell's bill of sale waß next : discussed. Mr Mnndell said he had I separated the claim for " past adr yances," £123, which had been ob-- ' jecited to, ad proved for that.amount,' and now relied on his security for ■' "present and future advances" for ; £154 odd. Mr Wilson Smith, on his ' behalf, made a statement in contra- \ vention of the statement of conclusions - in Messrs Ferry and Perry's advice, i and satisfied the meeting, whereupon ! it was resolved on the motion of Mr Webster, seconded by Mr Inghs (Mr 1 M White dissenting)—" That as 1 Mr Mundell has agreed to waive his securty as to past advances, no steps be taken to impeach his security so ; far as it relates to present and future advances." J The alleged sacrifice by Mr Mundell , of a lease (2| years to run) of 100 acres and crop of oats upon it was next discussed. The bankrupt asserted that lease and crop were worth £350, ' and that Mr Mundell himself had valued it; at £BOO. Mr Mundell said that he had never valued them at all, but agreed, at Mr Bayley'a rei quest, to take up a mortgage to Mr \ Maslin at £IOO, believing the property was worth it. After he had done so, . however t he became afraid he was going to loose his money and sought a purchaser. Practical men went to f see the leasehold, and said that the crop was worthless from smut,-and the fences all out of repair and for some time the best offer he could get was £BO. He finally got £IOO for it. The lease had previously been put up to auction and no bid was made for it. It was resolved that Mr Webster should get a valuation made at the present time, and as at the time of the sale. Mrs Bayley's claim (put down in the bankrupt's filed statements at several thoujands) was next brought up, and Mr Knubley, her solicitor, undertook not to prove if certain articles of silver plate and pictures, Mrs Bay ley's property, were surrendered to her, and it was resolved that these articles be surrendered on those terms, Further resolutions were passed—- " That the bankrupt ba publicly examined before the court of bankruptcy ;" " That on Mr Bayley or his friends paying the assignee the sum of £SOO for distribution among the creditors,, tbe same be accepted in settlement (conditional on the bank not proving for over £250 as suggested ' before), and on prompt payment of such sum the assignee consent to the unopposed discharge of the bankrupt."