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Dynasty Group creditors approve payout deal

Fuseworks Media
Fuseworks Media

Auckland, June 28 NZPA - Creditors of the failed property company of Hong Kong businesswoman May Wang have accepted a repayment deal which will see them get about 2c in the dollar.

Wang, the frontperson for a group of Chinese investors bidding to buy $1.5 billion of New Zealand dairy farms, including those from the failed Crafar farming operation, now has to wait for the High Court to approve the deal in three to four weeks.

But her lawyer Paul Sills told NZPA the agreement of creditors meant she was likely to avoid bankruptcy.

The deal meant creditors will get a minimum of $500,000 to cover the $22 million debt.

Mr Sills said the deal needed approval of 75 percent of the dollar value money amount owed, as well as 50 percent of the physical number of creditors -- in this case 12.

He said both were achieved comfortably.

Jeff Meltzer, who has been appointed as trustee to oversee the scheme, will take it to the High Court for final approval. He was also responsible for overseeing the payout of the assets.

Mr Sills said any bankruptcy claims against Wang would come to an end if the court approved the deal.

"All those individual bankruptcy claims are captured by the proposal."

If one of the parties didn't agree to the deal they would need to see Mr Meltzer, Mr Sills said.

Westpac had led the application to bankrupt Wang over the debt owed to it of $620,000.

Nearly half the total debt is owed to Dominion Finance, which was placed in receivership in 2008, the New Zealand Herald website reported.

It said other creditors included Equitable General Insurance, the IRD, ANZ, Golden Funds, Allied Nationwide Finance and the Wine Country Credit Union.

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