Failed billionaire Nathan Tinkler dodges another liquidation amid battle with coal giant

Struggling mining magnate Nathan Tinkler has narrowly avoided yet another business collapse after striking a deal with coal giant Whitehaven over a long-running legal dispute between him and the company.

Whitehaven had recently ratcheted up the pressure on Tinkler’s company Cayenne Coal by lodging a winding-up action in the Federal Court seeking payment over Tinkler’s unsuccessful attempt to claim shares in the coal giant valued at more than $175 million.

Nathan Tinkler in 2021. Credit: Tash Sorensen

Whitehaven was seeking to have liquidators from PwC appointed to the shell company that acts as a trustee for one of Tinkler’s other private companies on the grounds that it was insolvent.

The stoush between the once-billionaire and coal behemoth dates to the $5 billion merger between Whitehaven and Tinkler’s Aston Resources in 2012 and the coal giant’s acquisition of Boardwalk Resources.

Tinkler in 2022 launched legal action in the NSW Supreme Court seeking rights to 26.68 million shares in Whitehaven he alleged were owed to his company as part of “milestone” or “restricted” shares under the original agreement.

The court dismissed Cayenne’s claim.

Cayenne had attempted to appeal against this decision, but in March this year agreed to drop its case against Whitehaven and other parties involved in the merger and to pay costs of its aborted appeal. Those costs have, so far, been assessed at $95,000.

Yet the payments were not made, according to documents filed by Whitehaven with the Federal Court. The case was expected to return to court in February.

Neolaw principal Mark Popplewell, the lawyer for Cayenne Coal in the Federal Court winding-up matter, said the proceeding had been resolved between Cayenne and Whitehaven when contacted this week.

“The parties have agreed terms of dismissal, and Cayenne expects dismissal to shortly occur.”

Whitehaven declined to comment.

Tinkler recently sold his mansion in Coffs Harbour for $25 million – a hefty discount on the $30 million sale price.

The coal giant is keen to put the long-running dispute with Tinkler behind it as it looks to address shareholder concerns following a bruising experience at its annual meeting in October, and an ongoing stoush with activist hedge fund Bell Rock over its disclosure of its interests in Whitehaven shares.

The group has also recently announced it had agreed to buy two Queensland coking coal mines from the BHP-Mitsubishi joint venture for more than $6 billion. Whitehaven chief executive Paul Flynn has described the deal as a “compelling transaction”.

“This transformational acquisition will pivot our portfolio towards metallurgical coal, which has been a core pillar of our strategy for many years, making this a better balanced business,” Flynn said.

“Our thermal coal business remains strategically important as we continue to provide much-needed coal products to support the global energy transition and as customers seek our high-quality and high-CV products to limit their emissions.”

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