249
9. All the evidence in the possession of the liquidators as to the constitution of the Hongkong and Singapore firms was placed before the Attorney General and resulted in Government deciding that the two estates were to be treated independently. The Liquidators were informed by Mr. C. C. Dunman, Liquidator at Singapore, that the facts were also under the consideration of the Straits Government. The correspondence with the Attorney General on this question will be found printed overleaf.
10. Shortly after the commencement of the winding-up an offer of $120,000.00 was received for the business, exclusive of book debts. A second offer of $90,000.00 exclusive of book debts and goodwill was subsequently received. Both offers were declined.
11. The Assets realised $201,564.52 and the expenses incurred in carrying on the business amounted to $63,362.78 and there is a sum of $136,796.85 available for distribution amongst creditors. Creditors for goods on consignment were satisfied in full from time to time, the sums paid to them aggregating $11,601.70. A first dividend of 75% was paid on the 24th of October, 1916, and a second and final dividend of 23% was paid on the 18th of January, 1917, making a total return of 98% to unsecured creditors.
12. In view of the favourable result of the liquidation the Bank have agreed to rank for dividend pro rata with the other creditors except in so far as their claim was satisfied by the remittance from Singapore, the proceeds of the sale of Singapore stock brought into Hongkong by the Bank, and the proceeds of the sale of Diamonds in their possession. The first two items realised $22,587.97 (Hongkong currency) and are referred to in the report of the Singapore Liquidator dated September, 1916, and re- present a surplus of security in the Bank's possession at Singapore. The Diamonds at Hongkong realised $19,845.35 and were actually delivered to the Bank at the time the Agreement mentioned in paragraph 4 hereof was entered into. This being so, there was never any question as to the Bank's lien thereon.
13. After deducting the security actually in the possession or control of the Bank, their claim was admitted at $79,232.11 on which sum they have been paid the dividend of 98%. The Liquidators believe, and think the Creditors must agree, that this has been the best solution to the difficulty, and that the Liquidators' action in compromising the matter was in the best interests of the estate, having in mind the probable large cost of litigation.
14. The Liquidators are pleased to report that the delay in the liquidation has not prejudiced the creditors, and has given them an opportunity of realising all the goods, except in very rare instances, at prices considerably above cost. The profits made have more than covered the expenses of the liquidation. The decision of the Liquidators to keep the shop open so long as a reasonable turnover existed has also saved a possibly large claim for damages from the Landlord of the shop premises. The sale by Auction of the balance of the stock was decided upon only after arrangements had been made for transfer of the unexpired portion of the lease to another tenant, without any loss to the estate beyond a sum of $132.50 for repairs.
15. The excellent prices obtained for the stock and furniture are in no smal! measure due to the efforts of Mr. A. L. Penning who was appointed by the Liquidators Manager of the shop. Mr. Carl Bunje also rendered able assistance to the Liquidators.
16. An approximate Statement of Affairs as at 31st December, 1914, was sent to Messrs. Mappin & Webb, Ltd., London, early in 1915, as representing Creditors in the United Kingdom. The Liquidators regret that owing to the incomplete state of the firm's books and the meagre information at their disposal, the Statement of Affairs was not complete. The value of the Hongkong stock taken over by the Liquidators, as worked out in detail by the Manager, was $130,000.00. The stock realized the sum of $179,774.81. 17. The Liquidators note with pleasure that the result of the winding-up has been considered satisfactory by the creditors in their acknowledgments of the first dividend of 75%.
18. A Statement of Accounts, duly audited, will be found overleaf.
LOWE, BINGHAM AND MATTHEWS,
Liquidators.
Hongkong, 31st January, 1917.
CHS. J. GAUPP & Co., Hongkong.
Summary of Liquidators* Receipts and Payments, period from 29th Oct., 1914, to 18th Jan., 1917.
Receipts.
To Cash BALANCES TAKEN OVER :—
Cash in Shop, Bank "Instalment Ac.",
"
I're-liquidation book debts collected,
SUNDRY DEBTORS:--
SALES :-
Cash Sales,
Collections A/c. Credit Sales, 95,099.05
Less Proceeds of Sale of Stock in Hongkong and Shanghai Banking Corporation's pos- session (deducted from claim, per contra) :-
Diamonds, $19,845.35 Singapore Stock, 17,510.75
FURNITURE SALES,...
BALANCE BROUGHT DOWN,
Payments.
$ 437.25 3,070.00
By SALARIES AND WAGES (including English
Employees' Home Passages),
28,100.01
3,507.25
31
RENT,
17,643.33
**
GENERAL CHARGES,
3,201.92
12,327.46
11
COST OF MATERIALS (purchased locally),
2,030.62
$122,032.86
"
LEGAL FEES,...
1,481.72
LIQUIDATORS' FEES,
5,081.32
$217,130.91
TI
INTEREST,
6.138.04
+1
F. HEERMANN'S DRAWINGS,
1,404.89
AUDITORS' FEES, ...
785,82
64,767.67
179,774.81 5,955.00
$201,504.52
BALANCE AVAILABLE FOR DISTRIBUTION,
CARRIED DOWN,
136,796,85
8 201,564.52
$ 37,356.10
די
136,796.85 By SECCRED CREDITORS :
$ 136,790.85
++
Consignment Goods, sold by Liquidators,
paid for in full,
PARTLY SECURED CREDITOR: Hongkong &
Shanghai Banking Corporation :-
Overdraft,
Liability under two Bills of
Exchange,
$ 98,049.47
23,615.06
$ 121,665.43
Less Security in Bank's possession:-
Remittance from
Singapore, ...$ 5,077.22
Singapore goods sold
in Hongkong,... 17,510.75
Hongkong Dia-
mond Stock,
19,845.35
42,433,32
TRANSFERRED TO UNSECURED LIST, $ 79,232.11
By UNSECURED CREDITORS :--
Hongkong & Shanghai Bank-
ing Corporation,...
Sterling Claims,
£3,742. 11. 2. @ 2/17
..$79,232.11
34,713.07
Franc Claims,
Fcs. 5,547.20 @ 301...
1,842,92
Gold Dollar Claims,
393.11
11,382.58
G. $200.98 @51
Hongkong Dollar Claims,
Total of Unsecured Claims, $127,564.69)
First Dividend of $75% and
Second and Final Dividend
of $23% on $127,564.69
$125,013.40, paid...
Balance reserved for unpaid
liquidation expenses
11,601,70
.125,016.02
170.13
$136,790.85
LOWE, BINGHAM & MATTHEWS,
Liquidators.
We report that we have examined the above Statement with the books, accounts and vouchers and other available information and we certify that in our opinion such statement is a correct summary of the Liquidators' Receipts and Payments according to the best of our information and as shewn by the books of the Liquidators. |Hongkong, 20th January, 1917.
LINSTEAD & DAVIS,
Auditors.