Clive Palmer-owned companies launch legal bid

UPDATE: Three Clive Palmer-owned nickel companies which are not in the hands of administrators have launched a legal bid to block the appointment of receivers.

Clive Palmer

THREE Clive Palmer-owned nickel companies not in the hands of administrators have launched a legal bid to block the appointment of receivers over unspecified nickel assets in Townsville.

Insolvency advisors FTI Consulting were set to appoint a receiver yesterday based on four documents signed by the three Palmer companies on January 18, including deeds of guarantee and indemnity and powers of attorney, the court documents claim.

QNI Resources (QNIR), QNI Metals (QNIM) and Queensland Nickel Sales (QNS) this morning launched a civil suit in the Supreme Court in Brisbane against the administrators of cash-strapped Queensland Nickel (QN), FTI.

The three companies want an injunction to block four top FTI bosses from appointing a receiver to “property” owned by QNIR, QNIM or QNS.

The claim has been lodged four days after the four FTI partners published their report recommending Queensland Nickel be liquidated and criticising Palmer for allegedly acting as a “shadow director” of the company.

The documents, filed this morning by Kilmurray Legal solicitor Kris Byrne, do not reveal the value of the property or where it is located.

Receivers are generally appointed to take possession of assets after a company defaults on loan repayments.

The three companies also want an injunction blocking QN’s administrators from seizing or removing cash from QN’s bank accounts held with National Australia Bank.
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QNIR and QNIM ran the nickel refinery and employed the workers under a joint venture agreement with the beleaguered QN which dates back over 23 years, court documents state.

According to the originating application filed on behalf of the three companies, FTI believed they were entitled to appoint a receiver to “property” owned by QNIR, QNIM or QNS yesterday.

QN issued notices to the three companies in February 24, March 30, and April 6 warning them that receivers would soon be appointed.

The case will be heard in the Supreme Court on Wednesday.

FTI declined to comment about the case.

Kris Byrne, a solicitor representing the three Palmer companies, also declined to comment today.