3 Nov 2010

Businesswoman refusing to tell court names of lenders

7:35 pm on 3 November 2010

Businesswoman May Wang is refusing to say whom she has borrowed money from to help pay creditors she owes millions of dollars.

Mrs Wang has returned from Hong Kong to be cross-examined in the Auckland High Court on a number of matters, including charges she faces in the District Court.

She is fighting bankruptcy at a hearing in the High Court, which will determine if a deal for creditors of a previous company should be accepted.

The arrangement would give the creditors of Dynasty Group about six cents in the dollar. They are owed about $20 million.

Mrs Wang is fronting a bid by Hong Kong-based Natural Dairy (NZ) Holdings to buy the Crafar family farms, which are in receivership.

Mrs Wang says friends and acquaintances have helped bankroll her bid to pay off creditors from Dynasty Group, but so far will not name names. She says she promised them that their names would remain secret.

On Wednesday, the High Court held a hearing in chambers but it is not yet clear whether Ms Wang was forced to reveal her backers.

Mrs Wang has also confirmed to a lawyer for the Inland Revenue Department that she has overdue tax to pay. She says, however, that she has no money to pay this and will have to borrow more.

The IRD says that if the deal is rejected in court it wants her immediately declared bankrupt.