An internecine battle within Auckland’s Nahkle family saw the High Court order two family trustee companies into liquidation to protect trust assets at a time when trust operations are insolvent with son Daniel wanting to retain control, propping up trust activities with further lines of credit.
In advance of the liquidation applications, Daniel bought out Westpac’s $7.7 million secured debt over Nakhle Group assets. He was subsequently blocked from seizing control of trust assets by appointing a receiver.
The full extent of Nahkle family trust assets was not disclosed.
Nahkle Group’s website claims interests in commercial and residential property, education, farming and throughbred breeding.
The High Court heard specialist accounting evidence that two separate Nahkle trust entities are insolvent: Bryerly Park Ltd having accumulated losses of $7.6 million and negative cashflows; Karaka Estate Ltd with losses of $0.77 million in the last four years and again negative cash flows.
Neither is able to pay its debts as they fall due.
Each is being propped up with funding provided by Daniel.
Evidence was given of family allegations that Daniel has misappropriated at least $40 million from the Nahkle Group. He claims that a decade-old family agreement entitles him to Group assets exceeding $60 million.
Matriarch Henriette Nahkle asked the High Court to put both corporate trustees into liquidation.
She and son Daniel are both directors.
Justice Powell ruled liquidation was necessary.
Family members are deadlocked.
Their dispute will likely take years to unravel, he indicated.
Liquidation ensures trust assets are now controlled by an independent person who can preserve these assets, acting in the interests of all trust creditors and beneficiaries, he said.
Justice Powell dismissed Daniel’s request for receivership instead.
This would leave Daniel in sole control, with no surety of Daniel continuing to provide funding and the possibility of the trusts’ net asset positions deteriorating further, he said.
Nahkle v. Karaka Estate Ltd & Nahkle v. Byerley Park Ltd – High Court (7.08.26)
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