Businesswoman May Wang has almost staved off bankruptcy following a creditor’s meeting this afternoon.
The face behind a $1.5 billion proposal to buy up dairy farms and milk processing capacity has been dogged by a multi-million dollar legacy of debt following the failure of her Dynasty group of property development companies three years ago.
Late last month, the National Business Review revealed Ms Wang accepted responsibility for $22.2 million in combined debts, but was offering just $500,000 to settle them in a creditors’ proposal.
Today, Ms Wang told NBR that her creditors had accepted the proposal, but the final details of the scheme were confidential.
The creditors’ proposal was created after Westpac had summary judgment awarded against Ms Wang for a $620,000 debt. The bank then started bankruptcy proceedings, which was supported by other creditors.
Ms Wang is the majority owner of UBNZ Assets. Hong Kong-listed Natural Dairy Holdings owns 20% of UBNZ Assets and is the company behind the massive dairying proposal.
Another related company, UBNZ Funds, owned by Ms Wang, has made a bid for 16 Crafar farms held by receiver KordaMentha.
UBNZ Funds has already bought four dairy farms and transferred their ownership into UBNZ Assets. This move prompted an investigation by the Overseas Investment Office, which said approval should have been sought.
The Crafar family farms were placed in receivership last October owing more than $200 million to banks.
Meanwhile, Ms Wang has continued her fundraising mission on behalf of Natural Dairy and continues to make regular trips to Asia.
In May, Ms Wang claimed about $200 million had so far been raised.
Overseas Investment Office approval will be required for UBNZ to buy the Crafar farms, but the company has yet to submit an acceptable proposal.
Ms Wang said work on the application continues.
The scheme agreed to by creditors today will be submitted to the High Court for approval.
Mon, 28 Jun 2010