Rodgers Reidy was appointed as liquidators to Byerley Park and Karaka Estate after Judge Grant Powell granted an application by Henriette, ruling the companies were both insolvent.
Byerley Park is the sole trustee of the Byerley Park Trust, which owns and operates Byerley Park – a facility featuring a racehorse training centre, breeding operation and equine academy.
First liquidators’ reports were published yesterday afternoon and show the two companies owe more than $16m.
The debt may yet increase, with Inland Revenue yet to say how much it is owed.
More than $80,000 is owed to staff in holiday pay.
Liquidators Paul Vlasic and Derek Ah Sam said they were continuing to trade the Byerley Park business in the short term “whilst the property and associated assets are marketed for sale”.
Henriette Nakhle (centre left) surrounded by family after being recognised as a Member of the New Zealand Order of Merit in the 2023 New Year’s Honours for her contribution to the Lebanese community.
“The liquidators have appointed a real estate agent to attend to the marketing of the land and associated assets with a sale by deadline tender anticipated.
“The liquidators are currently liaising with a number of parties to identify any additional assets of the company.
“All assets will be sold by public auction or private treaty and any expressions of interest should be directed to this office.”
The reports say Byerley Park owes more than $13.7m to related parties and external unsecured creditors. Karaka Estate owes more than $2.5m.
Creditors include trade companies, rural supply firms, veterinary services, energy retailers and ACC.
The Nakhle Treasury Trust is also listed as a creditor along with Ardmore Finance. The latter was registered this year and purchased more than $7m in family debt from Westpac Bank on the eve of an April liquidation hearing. Daniel is a joint director.
The liquidators have also listed the companies’ assets.
Byerley Park owns nearly $13m in land and buildings, and more than $300,000 in plant and equipment. It is owed $101,000 by debtors and holds $225,000 “cash in bank”.
The report also lists $3.38m in related party current accounts.
Byerley Park Trust owns 134 head of cattle. The liquidators are finalising the sale of 46 animals and liaising with a livestock agent to “maximise recovery” from the remaining livestock.
Sybelle and Daniel Nakhle. Photo / Norrie Montgomery
Daniel and Henriette are joint directors of both liquidated companies.
The reports say the pair “hold differing views as to the cause” of the firms’ insolvencies.
“An investigation into the [companies] will be carried out to determine if there are any other assets of which we are not currently aware, and if there are, any other potential avenues for recoveries.”
An investigation would be conducted into the companies’ financial records to determine if any insolvent transactions occurred and if the companies or their officers engaged in any unlawful actions.
“If any insolvent transactions or breaches of legislation have occurred, we will consider making any claims that will increase the recovery available to creditors. Where sufficient evidence exists, breaches of legislation will be reported to the relevant authorities.”
‘Neither trusts the other’
The liquidations are the latest chapter in a bitter legal dispute relating to the management and division of the family’s considerable wealth.
The Nakhle family was once listed on the NBR rich list with an estimated fortune of $200m.
They have interests in a diverse portfolio of industries, including horse racing, property investment, early childhood education and quarrying.
They are also politically connected – National MP Rima Nakhle is a family member through marriage (she is not involved in the court action).
The Honorary Consul of Lebanon in New Zealand, Henriette Nakhle meeting Foreign Affairs Minister Winston Peters in 2024.
At a liquidation hearing in April, Daniel accepted pumping money into the two companies through entities he controlled and proposed continuing to source funding to cover operating expenses.
But Henriette and the wider family said they feared Daniel was using family money to keep the failing companies afloat without permission.
The judge said there was an irreconcilable breakdown in the relationship between mother and son.
“Neither trusts the other. Simply put, they do not mince words. The scale of the allegations is itself telling: Henriette and the rest of the immediate family contend that Daniel has already misappropriated at least $40m from the Nakhle Group.”
In a statement last month, Daniel said he was disappointed by the liquidation judgment and rejected allegations of impropriety.
He said he was sad private matters had escalated to this level and “spilled over into the public domain”.
The two companies had always been supported by family investment, he said. The liquidation judgment did not resolve the wider family disputes or the appropriate division of family assets.
Henriette and her husband Elias said they were pleased with Justice Powell’s ruling, “which confirms that Henriette’s application to have those entities liquidated was both necessary and appropriate”.
Asked how the family had become so fractured and whether reconciliation was possible, they said: “We have no further comment at this time”.
Lane Nichols is Auckland desk editor for the New Zealand Herald with more than 20 years’ experience in the industry.
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