May Wang seeks suspension of bankruptcy

May Wang leaves the Auckland High Court during a break in her bankruptcy hearing last month. Photo / Greg Bowker
May Wang leaves the Auckland High Court during a break in her bankruptcy hearing last month. Photo / Greg Bowker

The lawyer for controversial businesswoman May Wang was back in court today seeking to have her bankruptcy suspended ahead of her fight to have it revoked.

Wang, the front person for a group of Chinese investors seeking to buy $1.5 billion of New Zealand dairy farms, was last week ruled bankrupt at the High Court in Auckland.

The court also turned down a proposal to repay 6c in the dollar to creditors who were owed $22 million following the collapse of Wang's hotel and property business Dynasty Group.

Wang's lawyer Paul Sills said appeals were lodged last week with the Court of Appeal against both High Court decisions.

Today he was seeking to have the bankruptcy suspended, which would put it on hold until the Court of Appeal had decided on her appeals.

Her application is opposed by the Commissioner for Inland Revenue, Westpac, the Latitude group and the Official Assignee.

All affidavits and submissions on the suspension bid will be filed by Friday and a date to hear the bid before the end of the year is being sought.

Associate Judge Hannah Sargisson said in her High Court ruling on the creditors' proposal and the bankruptcy that Ms Wang had not been forthright to creditors or to the court.

Her disclosure of her interest in the UBNZ Group, which already owns four Crafar farms, "has been entirely inadequate", Associate Judge Sargisson said.

This inadequacy meant her repayment proposal did not comply with the relevant provisions of the legislation.

"Ms Wang's true position in relation to the UBNZ Trust is such that the compromise is not one the creditors should have entered into," the ruling said.

- NZPA

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