Lawyer: No money if Wang bankrupted

May Wang. Photo / Greg Bowker

If businesswoman May Wang is bankrupted, her creditors will receive nothing as there are no assets to sell, her lawyer told the court yesterday.

Wang has offered her creditors 6.5c in the dollar under a proposal that, if accepted by the court, will avert bankruptcy.

The hearing on whether Wang will be bankrupted is expected to finish this morning.

Inland Revenue, owed $1.3 million, does not support the creditors' proposal.

Another creditor, Latitude Asia, has also opposed the proposal. The company claims it is owed $2 million, but Wang strongly denies Latitude Asia is a creditor of hers.

Latitude Asia was contracted to help the UBNZ group find investors for the acquisition of the 20 Crafar farms it is buying for Hong Kong-listed company Natural Dairy.

Two weeks ago, Latitude Asia lost a case against the UBNZ group where it tried to get $475,000 for an alleged commission on the sale of four farms earlier this year.

Last week, Wang said she was instrumental in securing the remaining 16 Crafar farms for Natural Dairy.

She said if she was bankrupted her creditors would receive nothing and the deal for the farms would collapse.

Wang has managed to secure $1.35 million for the creditors' proposal, $500,000 has been paid to her in future earnings from UBNZ and a further $850,000 has been put forward by "friends and associates" based in China.

On Thursday, Wang was forced to disclose in closed court who these mystery backers were.

These details have not been released to the media.

Wang's lawyer Paul Sills said Wang was not taking the easy way out, but rather committing herself to years of limited income in a bid to settle the score with her creditors.