Crafar Farms to return to court

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Tue, 21 Feb 2012 6:33p.m.

The Crafar farms case is set to go to court again

The Crafar farms case is set to go to court again

By Tova O’Brien

The Crafar Farms case is going  to court again – this time the consortium led by Sir Michael Fay is contesting part of the High Court judgement that has stalled the sale to a Chinese company.

The Fay group is questioning the dairy farming experience of the Chinese – but this afternoon the Chinese fired back.

Shanghai Pengxin has offered just over $200 million for the farm, but its ability is being called into question.

In order to buy sensitive land in New Zealand overseas investors must have the business experience and acumen relevant to the overseas investment.

The High Court ruled the Chinese company’s lack of dairy farming experience.

They have now taken that complaint to the Court of Appeal, an action constitutional law expert Bill Hodge says is probably “trying to… make it as expensive and delay it as much as possible”.

He says he’s “just guessing” that the group’s aim is “to try to persuade the overseas intending purchasers to give up and go away”.

However, Shanghai Pengxin says there's no chance it will pull out, and describes the Fay bid as a “phantom bid” supported by half-truths and allegations.

The Overseas Investment Office had hoped to make its new recommendation any day now, but this latest appeal has made that very unlikely.

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Comments

22 Feb 2012 12:34a.m.

Matty wrote:

Correct Paul, he's bad news. I wouldn't put it past him to sell it off later to a high overseas bidder. There is no win win here. Crafar stuffed up big time here, so there's no point blaming the banks or the Govt. If the New Zealand public want to vent their anger, direct it at Crafar, because he put personal greed well before the environment and what is good for this country. It is Crafars actions that have led us to this..

21 Feb 2012 10:07p.m.

Paul Jones wrote:

The consortium led by Sir Michael Fay was involved in buying out tranzrail when it was privatised. What happened.... they sold it off at a profit later and the people that lost out were the mom &pop investors and us all. Is Sir Michael Fay action in the intrest of us New Zealanders or just just his own. He is just out to make a fast buck....