Palmer to face court of Queensland Nickel collapse

Image: Couriermail

Clive Palmer has been ordered to attend court regarding the management of Queensland Nickel, as the Federal Government appoints special purpose liquidators for the failed business.

Palmer, along with his nephew Clive Mensink – the sole appointed director for Queensland Nickel – and former managing director Ian Ferguson have all been ordered to face court over their management of the collapsed business, according to The West.

The hearings are expected to cover administrator FTI Consulting’s report alleging corporate misconduct by the company heads, and that Palmer used the business to fund his political campaigns.

It comes on the back of Palmer’s attack on current Queensland Nickel administrators FTI Consulting, and his announcement of plans to sue the business – and senior managing director John Park – for $1.2 billion.

Part of Palmer’s claim relied on the initial rejection of the inclusion of a governmental special purpose liquidator, which he claimed was done in order to hide alleged criminal activities.

“Park has opposed the appointment of a special purpose liquidator by the Commonwealth to cover up his wrong doing and has sought to convince the creditors’ committee of Queensland Nickel to oppose it,” Palmer said.

“John Park has done this for one purpose only and that is to hide his criminal actions and diversion of joint venture funding from a new liquidator.

“In short, Park lied in his report as administrator to creditors including the Commonwealth.”

FTI has now advised that special purpose liquidators (SPL) are being brought into the administration.

“The Liquidators will pursue all unfair preferences, uncommercial transactions and certain Director related transactions in relation to QNI. The liquidators will also review political donations, sponsorship fees, security interests granted to related parties and certain claims against Directors and officers of QNI for breach of duty,” FTI said in a statement.

“The SPL will investigate transactions between Queensland Nickel Pty Limited, QNI Metals Pty Limited, and QNI Resources Pty Limited (the ‘Joint Venture partners’) and also the activities of the various Directors and officers to those entities.”

FTI Consulting’s John Park said the “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 SPL to ensure the liquidation is conducted in a cost efficient manner and that the interests of all creditors are protected”.

Palmer has repeatedly denied any wrongdoing in his management of Queensland Nickel, and dismissed the allegations, and liability, over the business’ failure.

 

 

 

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