Would-be cattle baron Sam Mitchell faces bankruptcy after court finds in favour of lenders

Hong Kong-based lenders have won a NSW Supreme Court ruling against would-be cattle king Sam Mitchell, finding that he owes about $52m.

WealthCheck boss Sam Mitchell has been grounded by the collapse of his cattle business.

Would-be cattle baron Sam Mitchell faces bankruptcy after the NSW Supreme Court ruled in favour of ADM Capital, finding the former Bondi businessman owes the Hong Kong lenders $US35m ($52m) over a string of failed loans tied to agricultural deals.

The judgment against Mr Mitchell on Friday comes after months of pursuit of the agricultural deal-maker by ADM over loans tied to Northern Territory and Queensland cattle stations.

These deals, struck through Mr Mitchell’s WealthCheck business, saw him buy interests in the Maryfield and Limbunya stations in the Northern Territory for $38.2m and $65.2m, respectively, from Colin Ross’s North Star Pastoral in 2022.

Rabobank Australia funded the purchase of much of these assets in August 2022.

ADM offered $US22m funding for the purchase of the assets as well as a further $US13.8m to bankroll the purchase of livestock for the Mitchell River Cattle Company, a joint venture between Mr Mitchell and agricultural deal-maker and LAWD boss Danny Thomas over a Queensland cattle property.

Court documents note the dispute over the loan was triggered in March when the cattle companies failed to pay a $US575,372 loan payment.

This came after Rabobank took action in December last year against Mr Mitchell’s companies, warning they were in default on the loans used to purchase the properties.

Rabobank intends to sell the cattle properties.

WealthCheck boss Sam Mitchell.

Court documents say ADM warned Mr Mitchell he was required to pay the lender in May, before issuing another letter of demand in June.

ADM has also seized control of a number of companies controlled by Mr Mitchell as it seeks to regain its cash, including a key corporate entity called The Edge TC, used by the agricultural deal-maker to control several assets.

This puts the Hong Kong deal-makers in control of much of the businessman’s business empire, formerly run from his Bondi headquarters.

The court found in favour of ADM on Friday in a summary judgment after Mr Mitchell failed to contest the case, despite telling those close to him that he would fight the lenders.

Justice Michael Ball ordered Mr Mitchell to pay ADM’s costs.

The judgment opens the door to ADM bankrupting the businessman, who at his peak was known for striking cattle deals worth in excess of $500m.

ADM may also use any bankruptcy finding to pursue Mr Mitchell for his American assets. The businessman flew out of Australia in recent weeks after the Australian Taxation Office took aim at him over millions in unpaid taxes.

The ATO tipped Mr Mitchell’s WealthCheck Management business into liquidation in July, weeks after its first attempt to roll up the cattle baron’s company over millions in unpaid superannuation and taxes.

The tax office has since taken aim at another company controlled by Mr Mitchell’s wife, Rivera Farm Management, which played a key role in the agricultural empire, which at its peak boasted farms and assets across Western Australia, the Northern Territory, Queensland, NSW and Victoria.

Sam Mitchell photographed outside his Californian home.

Mr Mitchell has been sighted at his San Diego home in recent weeks, despite the trouble looming in Australia over his ­assets.

A bankruptcy finding in Australia could affect his US assets.

Lawyers acting for ADM have put Mr Mitchell on notice over attempts to tell current and former business partners he still controls assets under his family trust. The Weekend Australian has seen correspondence from Mr Mitchell’s Perth lawyer, Mendelawitz Morton director Ben Morton, saying he retained control of interests in companies associated with Queensland cattle property Bellevue Station.

Documents show Mr Mitchell attempted to replace the trustee of some assets on June 10, seemingly putting them beyond the control of ADM.

However, other letters seen by The Weekend Australian show ADM wrote to investors warning “Mr Morton’s letter contains factually incorrect information”, alleging Mr Mitchell wrongly attempted to replace the trustee of his Australian ­assets.

Hamilton Locke partner Zina Edwards, acting for ADM, noted Mr Mitchell’s family trust did not allow for the change in control.

She said ADM managing director David Whyte did not provide his consent for the change of control, which was also blocked by the trust’s rules which require ADM to be paid out before any change could be made.

Mr Mitchell did not respond to requests for comment.