Queensland Nickel liquidation vote in Townsville

UPDATE: Creditors have voted unanimously to put Clive Palmer’s Queensland Nickel into liquidation. But now, the task of trying to recoup up to $224 million in cash from his companies begins.

Clive Palmer holding a press conference at Parliament House in Canberra. Picture Kym Smith

CREDITORS have voted unanimously to put Clive Palmer’s Queensland Nickel into liquidation.

Liquidators will now seek to reclaim up to $224 million in cash from related Palmer companies, and even potentially chase Mr Palmer and his nephew Clive Mensink personally for some of the debts.

THEY OWE ME: Palmer counted among Queensland Nickel’s creditors

It follows the second creditors’ meeting in Townsville this morning.

Liquidators will only be able to pursue the two businessmen personally for any debts accrued by QN after it was trading insolvent, which administrators say began from November 27 and Mr Palmer denies. If this action is pursued it will need to be litigated and will require them to prove Mr Palmer was a shadow director, which he also denies.

Loan payments from Queensland Nickel to Palmer-related companies from July 2012-January 2016.

The Australian Tax Office has also taken an interest, questioning administrators over the $189 million in debts QN forgave to other Palmer companies.

Responding to a question from the ATO, administrators said it was hypothetically possible for Mr Palmer’s assets to be frozen if he was to be pursued for breaches of director’s duties.

The 800 former workers are expected to get $68 million of their $74 million in owing redundancies and entitlements paid through the Federal Government’s Fair Entitlements Guarantee scheme.

Remaining workers cash will have to be secured through the liquidation process.

FTI Consulting administrator John Park warned there was a long road ahead to claw back any owing cash.

“It’s going to be disputed, expensive and lengthy,” he said.

“Trust me, I feel as though there’s a number of parties that want to provide a funding solution.”

Former QN forklift driver Greg Jackson, 59, said he wanted to know if workers would get back all the wages and entitlements they were owed.

“The Federal Government said they will put their hand in their own pocket for $74 million and then try and get their money back off Clive. Best of luck,” he said.

Mr Jackson said when Mr Palmer used to visit the plant a stop work and barbecue would be held.

“Clive would puff himself up, say he had an open cheque book and no one would lose their job even if he had to dip into his own money,” he said.

“Then he went into politics and drained the cash.”

EARLIER: CLIVE Palmer is copping the brunt of anger among workers gathering in Townsville for a vote on whether to wind up his company Queensland Nickel.

Creditors, including almost 800 sacked refinery workers, are owed about $200 million and will vote on Friday whether to put the company into liquidation.

Phil Blackhurst worked at Queensland Nickel’s Townsville refinery for seven years, and other than some casual work he’s not had an income since losing his job in January.

“It’s been hard, very stressful,” he said.

Hundreds of Qld Nickel employees turn out to vote on the company's future. These are the options. @tennewsqld pic.twitter.com/lLIoqZOybV

— Jonathan Lea (@JonathanLea10) April 22, 2016

His fury at the federal MP was clear, but hopes administrators will get Mr Palmer to shoulder the burden of Queensland Nickel’s debts, including almost $74 million in employee entitlements. For Mr Blackhurst, his wife and three kids that amounts to a year’s salary.

He believes he’ll get most of what he’s owed under a federal scheme that’s been activated to cover outstanding entitlements, but he wants to see Mr Palmer held to account and believes a vote for liquidation is the first step in achieving that.

Clive Palmer has copped the brunt of anger among workers gathered in Townsville for a vote on whether to wind up his company Queensland Nickel. Picture Kym Smith

“People have gone from $4000 to $5000 a month to $400 a fortnight,” he says.

“Old mate (Clive Palmer) just doesn’t care what he’s done to us. But I hope they’ll get him.

“You can’t have debts and not pay them.” Antony Carr also spent about seven years working at the refinery before he lost his job just after Queensland Nickel was put into voluntary administration.

He’s now planning a move to Mt Isa for a new start there, and unlike some affected workers has managed to hold on to his house after arranging with his bank to suspend mortgage payments.

“The first couple of weeks were an emotional rollercoaster. We didn’t know where our next dollar was coming from,” he says. “I will vote for liquidation. It’s the only way.” Mr Carr said there was plenty he wanted to say about Mr Palmer, but resisted because he doesn’t want it to taint his future employment prospects.

The vote will get underway at 11am (AEST).