NZ First-linked forestry business faces liquidation application

David Henry is headed to court later this month after a Northland advertising firm applied for the liquidation of his company, NZ Future Forest Products (NZFFP).

Big Fish Creative, which has provided strategic planning and website development for NZFFP, applied for the liquidation of the wood products firm due to non-payment, according to Big Fish solicitor David Grindle of WRMK Lawyers.

Henry is the son of New Zealand First lawyer Brian Henry, also a founding director of NZFFP, whose board has also included Janet Trotman – partner of NZ First leader Winston Peters.

NZFFP was embroiled in controversy in 2019 after applying for $15 million in funding for a timber operation in Gisborne from the government's $3 billion Provincial Growth Fund.

That fund was overseen by the then minister for regional economic development and NZ First MP Shane Jones. After Jones recused himself from the decision-making process in October 2019, ministers Grant Robertson, David Parker and Phil Twyford subsequently turned the bid down in November.

It was reported at the time that NZFFP had also sought $95m in public money under the government’s one billion trees programme, though NZFFP denied that was the case.  

Brian Henry, who court papers list as counsel for the defendant alongside Shanahan's Law, resigned as a director of NZFFP on Feb 19, 2020. Trotman stepped down on Aug 3 last year.

Big Fish counts the Auckland International Airport, Northland Regional Council and Refining NZ as its clients.

David Henry, who founded London-based natural resources investment firm Medea Capital Partners in 2012, also presided over NZFFP’s failed $126m offer for wood processing business Claymark Group in late 2019.

More court action possible

Last November, Kinleith Land and Infrastructure – another firm in which Henry is the sole director and which at least partially bankrolls NZFFP – failed to settle its $24.6m sale and leaseback agreement for Cavalier Corp’s manufacturing unit in South Auckland. 

The plant was eventually sold for $25.5m in December to a third party, but Kinleith remains on the hook for the 10% deposit on that contract. 

Grindle said he was preparing court papers for a liquidation application against Kinleith, on behalf of another client while sources close to proceedings suggest Cavalier will also file against the firm.

Henry - who was unable to be reached for comment this week - is also understood to have angered several Auckland legal and real estate firms, including realtor Bayleys, which negotiated the Cavalier sale.

Commercial law firm Thompson Blackie Biddles, which represented Kinleith during that transaction, is also said to be owed money, but refused comment when approached by BusinessDesk.