HOTELKEEPER'S BANKRUPTCY.

Press, Volume LX, Issue 18219, 1 November 1924, Page 3

HOTELKEEPER'S BANKRUPTCY.

A DEFICIENCY OF £2863. The first meeting of creditor* in the bankrupt estate of Elizabeth Mary Phillips, of Wellington, was held there this week. The amount owing to unsecured creditors was shown as £3068 9a, th« only assets being £IOO worth of furniture in the Grand Hotel (Hastings) and £IOO worth of furniture at Lyall Bay. The deficiency was set down at £2863 9e.

The principal creditors were: Commissioner of Taxes, £432 (land-tax) and £336 (incometax); T. and W. Young, £737 3s; Soouilar and Co., Ltd., £550; Uriflen and Smith, Ltd. (Greymouth), £215; Burton Brewery Co., £l5O 12s; assigned estato J. D. Lynch (Greymouth), £115; Bkko (Hastings), £67 13s; Kashloigh (Hastings), £54 8s 3d; Le Quoane and Co wan (Hastings), £67 3e; Briggs Bros. (Dunedin), brewers, £77 17s. In her sworn statement, bankrupt eaid that for some years prior to September, 1919, ehc successfully kept various hotels on the "West Coast of the South Island. In that month she purchased the freehold ©f tho Grand Hotel at Hastings for £30,000, paying £SOOO in cash and taking over an existing first mortgage of £IO,OOO. Tho sum of £15,000 was advanced on second mortgage by the Napier Brewery Co., Ltd, About October, 1919, bankrupt purchased tho unexpired lease of the hotel for £1250, the furniture for £4OOO, and the stock for £2OOO. In 1920, 1921, and 1922 she expended a further £ISOO in renovations, and in 1922 £I2OO in converting part of the hotel into shops. Sho had put altogether £14,550 in the hotel. The hotel was not -a financial success, and bankrupt was compelled further to mortgage her securities. A building which she owned at Hastings was destroyed by fire, and the insurance moneys were not recoverable on account of the insurance premium not having been paid. This building was valued at £3OOO. In 1923 creditors commenced to press for payment, and distress warrants and bankruptcy petitions were issued. Bankrupt added that she owned four sections at Lyall Bay, but Messrs Dwan Bros, had taken security over the3e. The Official Assignee remarked that there appeared to be nothing in the estate; everything was mortgaged up. Mr W. Perry (for the bankrupt): >.o>tbing at all. I have told the creditor* that several times. It was decided to adjourn the meeting until November 12th to enable a statement to be obtained from Messrs Dwan Bros.