The claims and counterclaims played out this week in the High Court at Auckland in the latest chapter of a legal battle involving the Nakhle family.
Mother Henriette says she has lost trust in son Daniel and the family’s businesses are deadlocked because of an “irretrievable breakdown” in the relationship.
Honorary Consul of Lebanon in New Zealand, Henriette Nakhle MNZM, QSM, meeting Foreign Affairs Minister Winston Peters in 2024.
A judge is now weighing whether the two companies should be liquidated or if receivership is a more appropriate step.
The Nakhle family have interests in a diverse portfolio of industries, including horse racing, property investment and quarrying.
They are also politically connected – National MP Rima Nakhle is a member of the family through marriage (she is not involved in the court action).
But the family’s financial success has been marred by infighting and legal skirmishes, which has driven a wedge between mother and son.
Henriette and Daniel are directors of defendant companies, Karaka Estate Ltd (KEL) and Byerley Park Ltd (BPL), both linked to South Auckland thoroughbred racing facility Byerley Park.
Henriette, who is Honorary Consul for Lebanon in New Zealand, claims the companies are “hopelessly insolvent”. She has applied to the High Court to have liquidators appointed to conduct an independent investigation of their affairs.
Sybelle Nahra Nakhle and Daniel Nakhle. Photo / Norrie Montgomery
But Daniel’s lawyers say the companies’ debts are disputed and there are no grounds to take the “drastic and final remedy” of liquidation.
He says his family have reneged on the 2015 Curtis agreement that made him beneficial owner of the companies and their assets.
Daniel’s lawyers this week said he has been pumping in his own money to pay creditors and is committed to ensuring the entities remain solvent.
The source of that funding was put under scrutiny at the High Court hearing before Justice Grant Powell.
Henriette fears Daniel is spending family money without authorisation for his personal use, and Justice Powell questioned how he was able to “magic up” millions of dollars in a matter of days.
‘What is the ballpark figure?’
Henriette’s lawyer, Robert Stewart KC, told the court that BPL and KEL had incurred significant debts while under the effective control of Daniel, who allegedly used large advances from the family’s Nakhle Treasury Trust to keep them afloat.
“To prevent the loss potentially getting any greater Mrs Nakhle has said no to any further distributions or advancements.”
Henriette estimated Daniel had misappropriated up to $40m of the family’s money, though admitted this was a “best guess” and the actual figure “could be more”, Stewart said.
“What is a ballpark figure of what all this is worth?” Justice Powell asked. “I’m just trying to get a feel for the scale of the enterprise.”
Stewart replied: “My client doesn’t know what she doesn’t know. Efforts have been made to try and understand that but we’re still in a situation where we don’t have a full idea of what things are worth.
“Daniel has run the companies how he wanted, effectively without any impediment or encumbrance from other family members.”
After Daniel’s father Elias stepped back from his role, Henriette became more actively involved in the family’s financial affairs, Stewart said.
He claimed Daniel was irked because Henriette “won’t do what I tell her to do”, like his father had.
“There’s clearly some annoyance and bitterness that Mum’s not doing the same.”
Quoting his client, Stewart said: “You’ve used Treasury Trust funds for your own loss-making passion project and that’s not fair.
“You’ve taken assets solely for your own purposes and that has to stop.”
Surprise revelation sprung on court
In a surprise development on Wednesday, it emerged that a new company half-owned by Daniel had been registered. That company, Ardmore Finance, had bought $7.5m in company debt from Westpac Bank in the 24 hours before the hearing.
Daniel’s lawyer, Mark Sandelin, told the court the debt was owed by the family group, with the two defendant companies acting as guarantors.
Though the loans were due to expire, Sandelin said Ardmore was not going to take foreclosure action but had instead granted a three-month extension.
Justice Powell noted that the debt “still exists”.
“The companies still owe that money but it is just a different creditor.”
“That’s correct,” Sandelin replied.
Justice Grant Powell questioned how Daniel Nakhle had been able to ‘magic up’ $7.5m in a matter of days. Photo / Jason Dorday
Lawyer Daniel McLellan KC was also in court representing “supporting creditors” Roger and David Nakhle – Daniel’s brothers – who were in the public gallery on Wednesday.
McLellan made forthright submissions after learning of the debt reassignment, labelling it a “pretty desperate last-minute tactic” designed to give Daniel “leverage”.
He said a letter sent by Ardmore to BPL and KEL directors on Wednesday morning set out terms for the three-month loan reprieve.
“Which in essence is a threat that if a court order is made placing the companies into liquidation then the loans will be called up.
“In my submission, this is a tactical last-minute play.”
Stewart said the rest of the family were worried about how Daniel planned to continue funding the companies’ losses.
Henriette believed he had no personal funds other than family money.
Robert Stewart, pictured here during a separate case, is the King’s Counsel representing Henriette Nakhle. Photo / Peter Meecham
“The concern is that the funds that are being offered are funds that have been misappropriated, because there is zero information about where they come from, other than Daniel’s assertion that they are from outside the group,” Stewart said.
The judge also had questions for Sandelin, including as to how Daniel was financing the Westpac debt purchase.
“Daniel has not provided any evidence about where he got the money from … [and] how he was able to just magic up $7m in the last week,” Justice Powell said.
“None of that fills me with confidence. It almost makes me start to think some sort of investigation properly conducted by a liquidator would be appropriate.”
In response, Sandelin said: “I understand your Honour’s point.”
But he said his client was “independently wealthy” and there was no suggestion the money was coming from “family interests”.
Sandelin said Daniel was committed to maintaining the companies’ balance sheets and was prepared to pay for receivers.
Distributions from the family’s Treasury Trust were “properly authorised” with the full knowledge of his parents.
Asked by the judge how much was at stake in the case, Sandelin said the $60m in real estate Daniel claimed he was entitled to was roughly half the family’s total assets.
Sandelin blamed Henriette for the deadlock with the two companies, saying her hands were “unclean”. She was trying to avoid her obligations as a director and her application to liquidate the companies was an “abuse of process”, he told the court.
“Allegations of misappropriation, it should be very clear, are totally disputed by Daniel.”
Financial feud divides family
Henriette and her husband, Elias, arrived in New Zealand from Lebanon in the 1960s, raising three boys.
A November 2025 ruling by Associate Judge Grant Brittain says the couple operated a successful business during the 1980s and 1990s which enabled them to establish a group of companies and “generate significant wealth for the family”.
In 2004, two trusts were established to acquire land in Kingseat. BPL and KEL each acquired neighbouring property where they established a horse breeding and training facility, which operates at a loss.
In 2008, the Nakhle Treasury Trust was established to act as a treasury for the group, with Nakhle Treasury Ltd (NTL) its sole trustee.
Lebanese Honorary Consul Henriette Nakhle (centre left) surrounded by family after being recognised as a Member of NZ Order of Merit in the 2023 New Year’s Honours for her contribution to the Lebanese Community.
Henriette and Daniel are the directors of NTL and Daniel has had primary responsibility for managing the group and operating NTL, the decision says.
Daniel “fell out” with his parents in 2014. This was followed by a period of reconciliation the following year “and negotiations among family members” regarding division of the group’s assets.
Daniel claims “binding terms of settlement” were agreed in 2015, making him the beneficial owner of both KEL and BPL assets.
Henriette and other parties deny they are bound by the 2015 Curtis agreement.
The November 2025 decision says NTL has made “significant distributions and advancements” to KEL and BPL. Henriette refused to approve further advances in 2023.
“Mr Nakhle has been funding the operating costs of KEL and BPL since 2020.”
In 2022, Daniel filed High Court proceedings against various group and family members seeking to enforce the 2015 agreement.
Several other proceedings have taken place, including claims by NTL to recover distributions and advances to BPL and KEL totalling more than $17m.
Daniel says the funds are not repayable.
Attempts at a facilitation process ended without resolution in December 2024.
“Mrs Nakhle says that the deadlock is fundamental and irretrievable, and she has lost all trust and confidence in Mr Nakhle,” the November 2025 decision says.
“She says that she and her husband placed significant trust in Mr Nakhle to manage the group for the interests of the wider family and their trust was misplaced. She alleges that Mr Nakhle has misappropriated a significant amount of money.”
Lane Nichols is Auckland desk editor for the New Zealand Herald with more than 20 years’ experience in the industry.
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