TWICE BANKRUPT

Hokitika Guardian, 15 October 1928, Page 8

TWICE BANKRUPT

AND TWO ■GROUPS OF CREDITORS. AUCKLAND, October 12. An unusual legal position has arisen as the result of the bankruptcy at Ashburton, of George Wilcox, garage proprietor, who was already an undischarged bankrupt, having been adjudicated in Auckland in 1922. The claims proved against his estate at that time amounted to £503, and the assets realised £2. The liabilities in the Ashburton bankruptcy amounted to £63-54. The Assignee there had realised £BIO. and he hoped to realise a further £250 from the book debts. 11 the Auckland creditors took the full sum to which they were entitled only about £251 would remain to be distributed among the Canterbury -creditors.

Mr A. S. Nieholls, on behalf of the Canterbury creditors, said he was aware he had no legal standing, but the Canterbury creditors bad felt the legal position was not quite fair. The creditors in the. first bankruptcy were entitled to the full amount and interest'at 6 per cent., but. speaking equitably, the money in the estate was not the Auckland creditors’ money, but the money collected out of assets that had been bought with Canterbury creditors’ money. He suggested that the Auckland creditors should accept 10s in the £, which would give them a fair dividend, while allowing Canterbury creditors something less'than 2s in the £.

The only resolution passed was tint the creditors at the meeting, acting unanimously, and as an act ol grace, were piepared to forego interest, and recommend the creditors not present to do the same. “This is the first case in my experience in which Auckland creditors have benefited from creditors in any other part of the Dominion in this way, but there have been three cases in whi'h Auckland creditors have lost to creditors elsewhere,” said the Assignee. “These cases, however, have not been on all fours with this one, in which 20s in the £ is available. The others were small amounts.”