BUILDER'S FAILURE

Evening Post, Volume CVIII, Issue 135, 4 December 1929, Page 6

BUILDER'S FAILURE

"FALLING OFF IK BUSINESS"

A meeting of creditors in the bankrupt estate of William Connan, contractor, Wellington, was held at the offico of tho Official Assignee yesterday afternoon. Mr. C. B. O'Donnoll represented the bankrupt.

The creditors present were: M'lieod, Weir, and Hopkirk (Mr. Hopkirk), Thos. Ballinger and Co., Ltd., and Briscoe and Co. : (Mr. Earnshaw), Evans Bay Timber Co. (Mr. H. Boys), D. M'Kae (F. C. Pears), G. D. James, and B. Williams (Mr. Maude). The statement of accounts showed: Unsecured creditors, £409 10s Id; total debts, £409 10s Id; book debs estimated to produce £40; cash in hands of C. B. 6'Donnell, solicitor, £154 6s 8d; total assets £254 6s 8d; deficiency, £155 3s sa.

The principal unsecured creditors were: Smith and Smith, Ltd., £99 14s 6d; V. Williams, joiner, £7416s 9d; Briscoe and Co., Ltd., £74 8s 4d; Evans Bay Timber Co., £30 13s 4d. In : his sworn statement bankrupt said that he had been in business as a contractor since 1907, and had always paid his way until within the last few months. lie had relied on his bank pass-book as a record of transactions, and extracted tho results from that source. All receipts had been banked, and cheques drawn for payments. His present failure was due partly" to a severe falling-off in business and the difficulty of obtaining sufficient remunerative contracts to keep him fully employed, but more particularly to default in payment for work done and materials supplied in respect of one contract —the unpaid balance on which had so far proved irrecoverable. Financial stringency prevented his meeting payments duo on mortgages on hia residence, with consequent foreclosure and eventual sale at a considerable sacrifice. As several creditors had instituted proceedings and obtained judgment, he was compelled to file to insure equal distribution of the cash surplus on the sale of his residence.

Bankrupt was questioned in regard to certain debts, which it was asserted he owed, and as to moneys he had received, and after hearing his answers, the Official Assignee expressed dissatisfaction, and' said perhaps the best thing to do was to bring bankrupt before tho Court, and compel him to answer. Bankrupt maintained that he did not know, and therefore could not give a direct answer. He added that he had given all the information possible; he had given up everything: he had even sold his house for £1700—the mortgage on it being £1200—and everything had gone to pay his debts. A resolution was adopted to the effect that the Official Assignee have the furniture valued; and that bankrupt bo allowed £60 worth.

The meeting was then adjourned sine die.