Nathan Tinkler has arrived at the Supreme Court to face questions over his role in his failed company Muslanne Resources.
Tinkler is due to face questions over the $28.4 million debt Muslanne owes to listed coal explorer Blackwood Corporation under a share placement agreement reached last year, SMH reported.
Blackwood forced Mulsanne into liquidation last year after Tinkler's company failed to pay $28.4 million as part of a deal to take a one-third stake in Blackwood.
Attempts to settle the dispute have failed, as has Tinkler’s attempt to stop the court proceedings.
Mulsanne liquidator Robyn Duggan, said Tinkler would be the first up for questioning, followed by company secretary Aimee Hyde.
Duggan said the focus would be on the share placement agreement but would also extend to Tinkler’s personal finance position.
''In the event we form a view that there have been breaches of the Corporations Act, then we'll need to consider the directors' personal financial position to ascertain their ability to meet any claim for compensation,'' said the liquidator's barrister, Robert Newlinds, SC.
News.com.au reports that Tinkler’s finances are in trouble having allegedly borrowed $700 million secured against his stake in coal company Whitehaven – which is now estimated to be worth just $500 million.
Reports have also surfaced that Tinkler approached more than four financiers in a last-ditch attempt to help him pay the money owed to Blackwood.
Earlier this year speculation arose Chinese miner Shenhua Group was in talks to purchase Tinkler's main asset, a 19.4 per cent stake in Whitehaven Coal estimated to be worth around $630 million.
The Whitehaven stake has seen volatility in recent months, following a hoax by activist Jonathan Moylan, and Tinkler's unsuccessful bid to privatise the company and remove parts of its senior management.