TEA EOOM BUSINESS

Evening Post, Volume CVIII, Issue 134, 3 December 1929, Page 13

TEA EOOM BUSINESS

BANKRUPTCY PROCEEDINGS

A meeting of creditors in the bankrupt estate o£ Edward Lawrence Butterworth, labourer, Wellington, was held at the office o£ the Official Assignee (Mr. S. Tansley) to-day. Mr. 0. N. C. Pragnell represented bankrupt. The statement of accounts showed: Secured creditors, £399 2s; less estimated value of securities, £650; surplus to contra, £250 18s; total debts, £130 5s lid; book debts, £82 17s; surplus from securities in hands of secured creditors, £250 8s; total assets, £332 los. The principal creditor was the Dominion Farmers' Institute, £93 4s Id.

In his sworn statement bankrupt said that in December, 1928, he took and executed a lease for a period of five years of tea rooms in the Dominion Farmers' Institute Building, Wellington, at a. rental of £6 12s 6d per week for the first year, £7 10s per week for the second year, and £S 10s per week for the remainder of the term. At the same time he purchased from the Institute certain chattels used in connection with the business for £200 and to secure payment to the1 Institute he executed a bill* of sale over the chattels to secure the purchase money. The tea room business did not come up to what he said, it was represented to be, so he endeavoured to secure a reduction of rent This was refused. He vacated the premises in July, 1920. Prior to leaving the premises Butterworth was served with m, m°nj by tiie Institute to recover £296 7s 5d and for the purchase money due under the bill of sale. The Institute took possession of the chattels, and immediately caused the business to be ca--ried on. The Institute pressed him, and served him with a bankruptcy notice. He offered the Institute a property in Christchurch m satisfaction of the £93 4s i<j due to it, but they refused the offer. He was now working as a labourer, but his assets should realise more than sufficient to pay his creditors 20s in the £ In reply to the Official Assignee, Butterworth said the takings in the tea rooms during the last three months of his tenancy averaged £30 a week. It was agreed that inquiries be made by the Official Assignee as to the prosPJ»t of getting some surplus from the sale of th» property in Christchurch. Tke meeting was then adjourned sine