A woman at the centre of a Chinese bid to buy the Crafar farms has had a deal that would have helped her avoid bankruptcy rejected by the High Court.
May Wang is fronting a bid by Hong Kong-based Natural Dairy (NZ) Holdings to buy the Crafar family farms which are in receivership.
Ms Wang is facing bankruptcy because of a failed hotel business in 2008 but had reached an agreement with most of her creditors to pay back 6 cents for every dollar they invested.
The deal required approval by the court, however Associate Judge Sargisson has rejected it, saying Ms Wang has not being forthright with her creditors or the court.
He says her financial affairs require more scrutiny.
A further hearing on the bankruptcy bid was due to take place on Tuesday.