Court to decide Du Val asset seizure orders

Kenyon and Charlotte Clarke of the property company Du Val Group.

A hearing into whether orders seizing the assets of property group Du Val can stay in place is under way in Auckland, but with strict limits on what can be reported.

In August 2024, the Financial Markets Authority (FMA) raided the home of Du Val founders Charlotte and Kenyon Clarke, seizing assets and documentation, and the group was placed into receivership.

The Government subsequently took the unusual step of placing 70 Du Val entities into statutory management, while the Clarkes personally and six other entities remain in receivership.

The FMA gained the asset preservation orders “without notice”, meaning the Clarkes have not had the opportunity to have their say.

This week’s hearing is asking the High Court whether the orders can continue on an ‘on notice’ basis, giving the Clarkes the chance to argue against them.

Statutory managers PwC estimate Du Val owes investors and creditors $306m.

The Clarkes’ lawyer, Ron Mansfield KC, opposed publication of any of the detail of the hearing on Monday other than what is already in the public domain about the collapse.

The FMA’s lawyer, Jenny Cooper KC, said the regulator was concerned about ensuring a fair trial if charges were eventually laid.

Justice Jane Anderson said on Monday she would consider the suppression requests.

Kenyon Clarke said a health issue precluded the couple from attending the hearing on Monday.

“We would have liked to be in court today; however, that is not possible,” he told BusinessDesk on Monday.

“We have confidence in our legal team and the pursuit of justice in terms of our personal receivership and the longer-term challenge to the statutory mismanagement.”

Last month, Justice Anderson granted the Clarkes leave to appeal her order that the pair front up to PwC to be interviewed.

An appeal date has not been set yet.

- BusinessDesk