PERTH (miningweekly.com) - The Queensland Court of Appeal has ordered Clive Palmer’s Mineralogy to repay more than A$102-million in loans to embattled Queensland Nickel.
“This is a great outcome for creditors of Queensland Nickel. After five long years of formal proceedings, we hope today’s decision will put an end to this matter and we can proceed to finalise payments to creditors and finalise a long and complicated liquidation,” said liquidator John Park.
Park noted that subject to the recovery of the judgment sum, the funds would be applied towards priority costs, employees and remaining unsecured creditor claims. The unsecured creditor claims are collectively estimated to exceed A$100-million.
In the original judgment, the Supreme Court held that the loans sought by Queensland Nickel had represented loans from joint venture (JV) companies, meaning the funds were not repayable to Queensland Nickel.
However, the Appeals Court overturned the ruling and found that the loans had been from Queensland Nickel to Mineralogy, and not from the JV companies.
A spokesperson for Palmer told the ABC that his lawyers were ‘reviewing the judgment’.
The 2016 collapse of Queensland Nickel left 800 employees without work and about A$200-million owed to creditors.