23 May 2010

Crafar receivers say deal achieves best outcome

2:50 pm on 23 May 2010

The receivers for the Crafar farms say the troubled financial past of UBNZ director, May Wang, doesn't affect the process of selling the properties to the company she represents.

The receivers, KordaMentha, have agreed to sell 16 farms to the Chinese-backed investment group, of which Ms Wang is a director.

Ms Wang appeared in court last month accused of failing to provide the liquidators of hotel company Dynasty Group with information, leaving the country to avoid an investigation and failing to keep adequate accounting records.

A receiver with KordaMentha, Michael Stiassny, says receivers understand the issues with May Wang.

"Our job is to maximise the realisation of these farms and we have signed this offer because we believe it is clearly what we have to do to achieve our outcome. We are somewhat ambivalent as to May Wang and her background."

The sale is conditional on Overseas Investment Office (OIO) approval. Once this is given, the receivers say, UBNZ would be able to take over in a week.

Green Party co-leader Russel Norman is calling on the Government to block the sale, saying land has a special meaning for New Zealanders, and if large chunks of productive rural land fall into the hands of foreign interests, it will feel like a loss of sovereignty.

He says rural land prices are already too expensive for family farms to survive and the sale will make the situation worse.

Dr Norman says the OIO approves almost all applications from foreign investors, so it's very likely the deal will go through.