Winding-up Petition for Associated Gold Dredges

Manawatu Times, Volume 67, Issue 209, 2 September 1942, Page 5

Winding-up Petition for Associated Gold Dredges

Per Press Association. CHRItoTUHUKCH, SepL 1. Leave to present a winuing-up petition against Associated Gold Dredges N.Z. mmited was granted to A. and T. Burt Limited, Dunedin, by Mr. Justice Northcroft in the toupreme Court to-day. The application was made under the Debtors Emergency Regulations by the company which was one of three firms that ’>uilt dredges for Associated Dredges and wvie owed a total of £49,012. Mr. J. M. Paterson, Dunedin, for A. and T. Burt, said the three dredges hid been built and the amounts owing were: Burts’, £19,008; Dunedin Engineering and Steel Company, £14,220; Andersons Limited, £15,784. The last claim might be subject to adjustment. Mr. Paterson said the company’s nominal capital was £450,000 in 445,000 ordinary shares of £1 each, and 100,000 deferred shares of a shilling each. The subscribed capital was £29,500 ordinary and £19,050 deferred. The Bank of Australasia had the first floating charge on the assets of the company and a debenture for £60,000 was given to the bank on October 13, 1939. The company’s total liabilities at present were £104,235. The principal liability was £50,965 to the Bank of Australasia, but this had been reduced by payments to £38,965. Mr. Paterson submitted that at prespnt the Bank of Australasia was exercising the rights of a receiver In connection with the company’s assets. That led to the trbuble the contractors had in getting paid. The bank was acting as actual receiver without having taken any of the steps necessary to crystallise Its floating charge on the company’s assets. Wh-.n the company knew these proceedings were going to be taken by the unpaid contractors and there had been protracted negotiations it had paid £12,000 to the bank In reduction of the floating charge. That was a most daring thing to do. Mr. A. W. Brown, for Associated Dredges, said the present position was that a call was being made which would net more than £14,000. Any order for winding up at this particular stage would be disastrous for the company, lhe company was solvent, but the difficulty m the past was that It had not boon allowed to use the money available. Mr. Brown asked that the Court should p« stpone the case for some reasonable time to allow the company to maks toms arrangements by which its debts eoilM be met and to satisfy its creditors. Within a matter of a few months rho contra.;! os would be receiving payment. A call was being made and gold produ jr.’on v.as Increasing. Judge Northcroft said he was of opinion that the leave sought should be granted. The special regulations under which the applications had been made had withheld fi-om these creditors the right to pursue their normal remedies. They had been rendered Impotent against a stronger and more inflnenMal creditor than themselves. In all the elr•eumstanceft the creditors wero entitled to p”-sue their rights. Costs were awarded against the company.