Wang names her backers

May Wang broke down during questioning at her bankruptcy hearing yesterday. Photo / Greg Bowker

May Wang has been forced to name her anonymous financial backers during a bankruptcy hearing for the UBNZ director.

But the names of those who could decide the fate of the Crafar Farms deal won't be disclosed to the public yet.

Wang has told the High Court at Auckland that Natural Dairy's multi-million deal to buy about 20 Crafar farms across the North Island would fail if she was bankrupted.

Wang is the trustee of the deal, and the sole director and shareholder of UBNZ Trustee, the vendor set up for the deal.

UBNZ Asset Holdings is planning to buy the Crafar farms for the Hong Kong company and then transfer the assets over to Natural Dairy in return for shares in the business.

Wang has proposed to pay her creditors 6.5c in the dollar. This proposal will be part funded by UBNZ.

She said she would use a $500,000 advancement from UBNZ, as well as $850,000 she has been pledged from mystery backers in China and Hong Kong, where Natural Dairy is listed and based.

Inland Revenue, a creditor that is owed $1.3 million, is opposing the creditors' proposal, and IRD lawyer Nick Malarao alleged yesterday that the $850,000 was actually Wang's from an overseas account that has not been declared.

Wang strongly denied this, saying the reason she wouldn't disclose the backers was because they were "friends and associates" who she had promised anonymity to as a condition of the loan.

Wang said "about five people" were behind the $850,000.

Other conditions of the loan included that it be repaid within a five-year period at 5 per cent interest per annum.

Malarao also questioned Wang on four British Virgin Island companies that she is the director and sole shareholder of.

These companies are also linked to UBNZ and Natural Dairy. Wang said they were set up as an investment vehicle to raise money for Natural Dairy, but three never started trading.

Malarao questioned why Wang had not disclosed these companies to her creditors during an approval meeting.

Wang said she didn't realise she needed to because they were not worth anything.

Wang's lawyer, Paul Sills, also questioned his client on her domestic and international assets, asking her whether she had disclosed the truth to her creditors and the court.

Wang broke into tears, saying she didn't have any assets to her name and that she was living off the gratuity of friends and family, people "I have known for years".

Wang, a devout Buddhist, said God knew she had done the right thing by her creditors.

A closed hearing was held yesterday between Justice Hannah Sargisson, Sills, Malarao and Wang where the names of those crucial backers were disclosed.

Justice Sargisson said these names would remain out of the public arena unless the names of the individuals and their links to Wang, UBNZ and Natural Dairy garnered enough public interest to disclose them.

On Monday, the hearing will resume on whether Wang will be bankrupted or whether her 6.5c deal will receive the stamp of approval.