GUARANTEES BLAMED

Press, Volume CV, Issue 31007, 12 March 1966, Page 21

GUARANTEES BLAMED

Bankruptcy Of Director

The failure of Stewart Industries and the guaranteeing by him of loans to the company were the causes of his present state of affairs, Edward Samuel Stewart, formerly a company director, told a meeting of his creditors called by the Official Assignee (Mr T. A. F. Withers) The bankrupt’s statement [showed debts owing to uni secured creditors amounting to £16,143 18s 6d and total assets of £2802 made up of book debts of £2 6s, furniture £3OO, and surplus from securities on house property £2500. This left a deficit of £13.341 18s Originally, however, £6500 was owing to Stewart’s father, Samuel Stewart, but he had proved only £2500. thus reducing the deficit to £9341 18s. | The bankrupt said he had [ guaranteed loans to Stewart [ Industries in 1962, 1963, and !in February, 1965, when he I still thought he had sufficient i assets to cover the guarantee. It was not until the early [part of this year that he beIcame aware that he did not have sufficient money to pay his debts. Stewart said he was not prepared to make an offer to his creditors. A motion was passed that disposal of the house property be postponed for 21 days from the date of the meeting to enable him to place before the Official Assignee an offer to the creditors for reduction of the deficiency, with a view to this being accepted in lieu of immediate sale of the house pro- | perty. On receipt of an offer a ; further meeting will be called Iby the Official Assignee.