Creditors Granted Leave To Present Winding-up Petition

Taranaki Daily News, 2 September 1942, Page 4

Creditors Granted Leave To Present Winding-up Petition

Press Assn. Christchurch, Last Night. Leave to present a winding-up petition against Associated Gold Dredges (N.Z.) Limited was granted to A. and T. Burt Limited, Dunedin, by Mr. Justice Northcroft in the Supreme Court to-day. The application was made under the Debtors' Emergency Regulations by the company, which is one of three firms that built dredges for Associated Dredges and were owed a total of £49,012. Mr. J. M. Paterson, Dunedin, for Burt, said three dredges had been built, and the amounts owing were Burt's £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 ordinar.v shares of £1 each and 100.000 deferred shares of ls each. The subscribed capital was £29,500 ordinary and £19,050 deferred. The Bank of Australasia had a first floating charge on the assets of the company and a debenture for £50,000 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 payment to £38,965. Mr. Paterson submitted that at present the Bank of Australasia was exercieing the rights of receiving in connection with the company's assets. That led to the trouble contractors had in getting paid. The bank was acting as re- ! ceiver without having taken any steps ! necessary to cuystallise its floating charge on the company's assets. When the company knew these proceedings were going to be taken by unpaid contractors, there had been protracted negotiations. It pajd £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. The comoany was solvent, but the difficulty j in the past was that it had not been allowed to use money available. Mr. j Brown asked that the court should post- i pone the case for some reasonable time to 'allow the company to make some arrangements by which debts could be met to satisfy creditors. Within a matter of a few months contractors would be receiving payment. A call was be_ ing made and gold production was increasing. His Honour said he was of opinion the leave sought should be granted. Special re'gulations under which the application had been made had_ withheld from these creditors the right to pursue their normal remedies. They had been rendered impotent against a stronger, more influential creditor than themselves. In all circumstances creditors were entitled to pursue their rights. Costs were awarded against the company.