May Wang increases payment plan to 6c

May Wang arrives for a creditors meeting in Auckland. Photo / Natalie Slade

May Wang has upped her payment to creditors in her failed property development company to 6c in the dollar.

She will now wait to have the deal approved by the High Court - a process that may take another four weeks.

Wang, who is fronting a $1.5 billion bid to buy up New Zealand dairy farms, said she was relieved creditors had "seen fit to accept my proposal".

She had earlier offered creditors just $500,000 to settle a $22 million debt, which equates to around 2c in the dollar.

The latest proposal came as the result of continued negotiations with her creditors, who said they wanted more money from the repayment plan, insolvency specialists Meltzer Mason Heath said.

One of her creditors, Westpac applied to the Auckland High Court to bankrupt Wang over a debt of $620,000.

It is now expected the case, which is due back in court this morning, will be further adjourned to a date following the High Court sign-off of the deal.

Wang has previously said creditors would receive little, if anything if she were made bankrupt.

Of the 12 creditors, seven representatives for the creditors attended yesterday's meeting, but said they had been instructed not to speak publicly about the deal.

Wang's lawyer Paul Sills described the outcome as "spectacular" as he left the meeting.

Wang said acceptance of her proposal would allow her to concentrate on her work with UBNZ Assets Holdings and the acquisition of the Crafar portfolio of dairy farms.

The other creditors the property company include: Equitable General Insurance, the IRD, ANZ, Golden Funds, Allied Nationwide Finance and the Wine Country Credit Union and Dominion Finance.