Developer rejects claims $3.8m owed to creditors

May Wang. Photo / Natalie Slade

Controversial property developer May Wang strongly disputes she owes more than $3.8 million to two creditors that are trying to bankrupt her, her lawyer Paul Sills says.

Wang, who is currently in Asia, is alleged to owe Inland Revenue (IRD) about $1.3 million in unpaid tax on assessed income between 2005 and 2008 and is alleged to owe Latitude Asia about $2.5 million. Both creditors have filed against Wang's proposal to pay creditors 6.5c in the dollar.

This week a hearing was scheduled at the High Court of Auckland for November 2 to hear the creditors' proposal, and either get court approval or proceed with the bankruptcy application. The original application was filed by Westpac over a debt of $620,000. The IRD and Latitude Asia have filed applications in support.

A spokesperson for Wang said the money the IRD had assessed as income was loans from banks.

The money Wang is alleged to owe Latitude Asia is opposed by the debtor.

Sills said the IRD had rejected the creditors' proposal as the money allegedly owed is public wealth and there is a public benefit from those funds to be paid.

He disputed any debt to Latitude Asia.

Latitude Asia's lawyer Robert Hucker would not comment on where his client was, or what country the company operated from.

Wang upped her original offer to creditors from 2c to 6.5c in the dollar. She had earlier offered just $500,000 to settle a $22 million debt.

Wang previously said she was "relieved" creditors had accepted the proposal as she is fronting a $1.5 billion bid to buy New Zealand dairy farms.

Other creditors include Equitable General Insurance, ANZ, Golden Funds, Allied Nationwide Finance, the Wine Country Credit Union and Dominion Finance.