Queensland Nickel's Clive Palmer
JOHANNESBURG (miningweekly.com) – The Federal Court on Wednesday appointed special purpose liquidators to investigate transactions related to mining magnate and politician Clive Palmer’s Queensland Nickel, granting an application by the federal government.
Queensland Nickel administrator FTI Consulting said it would work closely with special purpose liquidators Stephen Parbery, Marcus Ayres and Michael Owen to recover debts owed to creditors.
The special purpose liquidators would investigate transactions between Queensland Nickel, QNI Metals and QNI Resources, as well as the activities of the various directors and officers to those entities, while the liquidators would pursue all unfair preferences, uncommercial transactions and certain director-related transactions in relation to Queensland Nickel. The liquidators would also review political donations, sponsorship fees, security interests granted to related parties and certain claims against directors and officers of Queensland Nickel for breach of duty.
FTI Consulting recently released a report that claimed Palmer had used the company to fund a number of his other interests, including A$21.5-million to the Palmer United political party, A$200-million to support other companies associated with Palmer’s business portfolio, and that Palmer had scrapped some A$189-million in debt owed to Queensland Nickel.
The administrators also revealed that 787 former employees at Yabulu refinery and associated Townsville port facilities were due nearly A$72-million in redundancy entitlements, which the defunct Queensland Nickel was unable to pay owing to a lack of funds.
“Today’s application was supported by the liquidators as we believe that this appointment is in the best interests of all creditors. We now intend to work closely with the special purpose liquidators to ensure the liquidation is conducted in a cost efficient manner and that the interests of all creditors are protected,” said FTI Consulting MD John Park.
Liquidators from FTI Consulting were also granted orders for Clive Mensink, Ian Ferguson and Palmer to be summonsed for examination about the affairs of Queensland Nickel. The public examination was expected to take place in June.
The creditors of Queensland Nickel last month voted in support of a recommendation by FTI Consulting to wind up the company, with liquidators appointed to recover monies owing to the creditors.
Palmer on Tuesday accused FTI Consulting and Park of aiding and abetting a breach of trust, and causing serious breaches of the Queensland Nickel joint venture agreement. He is seeking A$1.2-billion in damages from FTI Consulting.