In June, the state’s Court of Appeal ordered Palmer’s private company, Mineralogy, to repay $102,844,346 in loans from Queensland Nickel.
The Court of Appeal found in favour of Queensland Nickel liquidators who argued that the loans did not benefit joint venture companies involved with the Townsville nickel refinery.
However, the dispute is far from over, and comes as Palmer defends himself against criminal charges associated with the Queensland Nickel collapse.
Palmer had settled much of the liquidators’ claim for $200 million, including $66 million in taxpayer funds used to cover sacked worker entitlements.
But the liquidators, John Park and Kelly-Anne Trenfield, argued unsecured creditor claims would be another $100 million plus, and are now eyeing off Mineralogy’s $103 million loan repayment.
The liquidators have filed documents in the Federal Court arguing the $103 million must be kept in the Queensland Nickel bank account, administered by the liquidators, until any appeal is finalised.
They also want an order that, if and when the appeal is dismissed, they can use the money to repay a Vannin Capital Operations debt from 2016, followed by their own fees from the long-running case, and then any remaining creditors where possible.
Vannin Capital bought some of Queensland Nickel’s debt to help fund the liquidation by FTI Consulting, which has previously complained of being owed fees totalling more than $14 million.
Palmer has railed against any suggestion his companies should pay the liquidators or provide a windfall to Vannin Capital.Jump to next article