Mining magnate Nathan Tinkler’s private company, Mulsanne Resources, is in liquidation after failing to pay back $28.4 million owed to coal junior Blackwood Corporation.
According to The Sydney Morning Herald if liquidators find Mulsanne does not have enough assets to cover the Blackwood debt, Tinkler could be charged with insolvent trading.
He could also face personal bankruptcy proceedings if fails to repay the debt, according to The Australian.
The NSW Supreme Court has appointed Ferrier Hodgson as liquidators for Tinkler’s company, after negotiations between Mulsanne and Blackwood broke down.
Earlier this year Mulsanne bought 95 million shares in Blackwood to help fund its exploration campaign.
The investment was made at a 50 per cent premium to the share price, and roughly translated to Tinkler taking a 34 per cent stake in the company.