May Wang declared bankrupt

May Wang File photo

Controversial Crafar deal frontwoman May Wang has been bankrupted this evening, in the High Court at Auckland, after having her bid to halt the proceedings dismissed.

Wang has been battling Westpac's bankruptcy application since last November.

Associate Judge Hannah Sargisson released her judgment on Wang's creditors' proposal on Monday that dismissed her bid to pay her creditors' out $1.35 million or 6.5c in the dollar on a collective $22 million debt.

That then cleared the way for Westpac to proceed with its application to bankrupt Wang.

Westpac has a judgment against Wang for $620,000.

Inland Revenue wanted her bankrupted over a $1.3 million debt - including interest and penalties, while Latitude Asia, a company based in the British Virgin Islands, alleged it was owed $2 million.

Wang denied owing the company that amount.

Wang said during the creditors' proposal that being bankrupted would stigmatise her in the eyes of Asia investors and hinder her future business dealings in both New Zealand and Asia.

Sargisson said in her judgment that Wang has not been honest with the court or her creditors on the value and whereabouts of her assets, and that the proposal did not meet the necessary requirements under the Insolvency Act.

Wang was not present in court today, but her lawyer Paul Sills represented her.

Creditors in favour of the application, Westpac, Inland Revenue and Latitude Asia were present.

Sargisson said it was in the best interests of Wang's creditors that her affairs be placed in the hands of the Official Assignee.

A judgment on the bankruptcy will be made available tomorrow or on Friday.