An Unusual Bankruptcy.

Kawhia Settler and Raglan Advertiser, Volume IV, Issue 299, 1 March 1907, Page 2

An Unusual Bankruptcy.

20s, IN THE £ GUARANTEED.

A rather unusual meeting of creditors took place on Friday ufternuon at the Official Assignee's office. The debtor was Mr Eagle D’Arcy Hamilton, and an unusual feature uf the pro coediugfi.w&s that bis parents guaran teed the creditor^2os in the £ Mr Gerard presided, and explained, thet it was upon h(s advice the debtor' had filed. Tbe partnership accounts showed unsecured creditors £569 4d, and assets £6lB 8a 2d, leaving a

surplus of £4B 9s lOd. The debtor’s private account showed unsecured creditors £7l 7s 6d, and assets £166. but the taker included sections held under options with right of purchase, which were, estimated to be worth £llO. Tbo value of the sections could, howeve;, only be obtained by offering tb-iin for sole. Mr Gerard (tbe assig nut) nt once entered into possession of ihe store. The debtoe'e sworn statement was then read. He stated that his father

! having guaranteed £9O for Mr Danes, aud advanced another £BO to purchase drapery, be (the debtor) entered into partnership with Mr Dance, tbe £lllO being c -nsidered his purchase money of a half share of the business. Bub frequently debtor’s mother advanced I £-113 8«, which was secured by mortgage. Afterwards bis parents pressed for payment, and he had no option but to file. Mr Gerard said while the figures showed an apparent surplus, iu the . ordinary way, if the assets were rea- i Hied the creditors would not get 20s i in the £. He understood, however, that Mrs Hamilton was willing to withdraw her claim upon the estate, take oyer the assets, and pay the partnership creditors, as well as tbe creditors in the debtor’s private estate, 20 < in tbe £, after liquidating tbe costs of bankruptcy. Had the other partner attended the meeting and agreed to that course, the whole matter could, have been settled at that meeting. Mr JJance, however, was not present, and all they could do was to invite tenders for the assets. Mr Pullen (debtor’s solicitor) said Hrs Hamilton would still, no doubt, be the largest tenderer. Mr Gerard said this was a very proper way to get out of a difficulty. There was no stigma attaching to the debtor. It was a clear case, as they had one tbe other day, where a man had a right to seek the protection of the Court. Mr Hamilton, senr., said it was tbe intention of debtor’s parents to see that 20-) in tho £ was paid to all tbe creditors under any circumstances. Mrs Hamilton and himself would be equally pleased if tbe partner was to take over the assets in the estate, and pay all creditors 20s in tbe £.

On the motion of Mr G. Squirrel I, seconded by Mr P. Hooton, it wirfs resolved That tenders be called for the estate, returnable within seven days.” Tbe creditors appointed Messrs Squirreil and Stewart as a committee to advise, with the assignee, in dealing with tbe tenders. The meeting was then adjourned sine die.