Paul Sills, May Wang's lawyer. Photo / Greg Bowker
The lawyer representing May Wang is confident creditors in her failed property development company will accept her proposal to repay them just 2c in the dollar to settle a multi-million dollar debt.
Wang, who is fronting a bid to buy up New Zealand's biggest private dairy operation, plans to use
money from consultancy work during the next three years to pay creditors in the Dynasty group a minimum payment of $500,000, from debt of $22 million.
Associate Judge Jeremy Doogue adjourned Westpac's application to bankrupt Wang in the Auckland High Court today, to give creditors time to vote on her proposal.
She is due back in court on June 29.
Her lawyer, Paul Sills, said the proposal had been received well by creditors and that they were taking it seriously.
It was a compromise which was the "best position that is available at the moment", Sills said.
"It's a very well considered scheme that shows she has put her best foot forward for creditors."
Wang said her creditors would receive little, if anything, if she were made bankrupt.
Westpac has applied to court to bankrupt Wang over debts of $620,000 while Allied Nationwide Finance, as a supporting creditor, is owed about $250,000.
Interestingly Dominion Finance, which was placed in receivership in 2008 owing 6000 investors $224 million, is owed the most money - $10.5 million - almost half of the total debt.
Creditors are due to vote on her proposal on June 21, just two days before tenders close for the Crafar farms.
Wang is fronting a bid by UBNZ to purchase the Crafar farms from the receivers.
The company has signed a conditional agreement to purchase the farms, but that agreement is subject to Overseas Investment Office approval and can be overtaken by a better offer.
The Auckland High Court last week rejected a bid by UBNZ Assets Holdings who argued that the company did not need OIO approval to purchase the farms.
