Liquidators are free to sue Nathan Tinkler for allegedly allowing one of his companies to trade while in receivership.
The NSW Supreme Court has granted a funding agreement between Blackwood and the liquidators of Mulsanne Resources – one of Tinkler’s failed companies – after Mulsanne failed to buy $28.4 million of Blackwood shares last year, after agreeing to do so.
Under the funding agreement, Blackwood will supply funds for liquidators Ferrier Hodgson to shut down Mulsanne and sue Tinkler for insolvent trading, the SMH reports.
“It does not appear that the liquidator has canvassed other funding options,” Justice Black wrote in his judgement released on Tuesday.
“However, the terms of the [agreement] appear to be more favourable to the company and its creditors than would realistically be available by third parties.”
Justice Black added there is ‘little realistic possibility’ Mulsanne’s directors would want to fund legal costs against themselves.
Administrators Ferrier Hodgson had begun proceedings in the NSW Supreme Court against Mulsanne’s directors two weeks ago for trading while insolvent.
According to Ferrier Hodgson all three Mulsanne directors permitted trading while insolvent last year.
Tinkler is one of the directors of the company, along with business partners Matthew Keen and Troy Palmer.
Tinkler appeared at the Supreme Court in March to explain his role in the failure of Muslanne Resources.
Blackwood forced Mulsanne into liquidation last year after the company failed to pay the $28.4 million as part of a deal to take a one-third stake in Blackwood.
Two weeks later, Tinkler lost the rights to his private jet and helicopter after his other company, TGHA Aviation, went into receivership.
The 19-seat jet and seven-seat helicopter were worth around $45 million.