Clive Palmer reaches settlement agreement with Special Purpose Liquidators of Queensland Nickel

Clive Palmer has reached a shock settlement agreement with Queensland Nickel’s liquidators, agreeing to repay millions of dollars to the government and unsecured creditors. He’s also reached a settlement over outstanding employee entitlements.

CLIVE Palmer has reached a shock out-of-court settlement with Queensland Nickel liquidators, agreeing to pay millions of dollars owed to taxpayers and refinery workers.

The deal, understood to be worth more than $100 million, will see Mr Palmer repay the $66 million in Commonwealth taxpayer funds used to pay his staff as part of the government’s Fair Entitlement Guarantee.

Clive Palmer paid $1 for Queensland Nickel refinery

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The 11th-hour agreement reached late yesterday afternoon comes more than two weeks into a mammoth Supreme Court trial over the company’s collapse.

Queensland Nickel special purpose liquidator Stephen Parbery said the settlement negotiations began after “the full weight of the evidence” was “laid bare” before Mr Palmer and his legal team.

Despite having to fork over millions of dollars, the Queensland billionaire last night issued a statement claiming he had been “vindicated” and that the settlement would save “tens of millions of dollars in legal fees”.

“Today’s settlement confirms the actions against me were nothing more than a witch hunt designed to smear my good reputation,’’ he said.

As part of the settlement, a Supreme Court freezing order over more than $500 million of Mr Palmer’s personal and business assets will be lifted.

Clive Palmer. Picture: Jono Searle/AAP

But the legal battle is not over for the former politician, who is still being pursued in the Supreme Court by the refinery’s General Purpose Liquidators.

“The complexities of the legal issues facing Mr Palmer and his co-defendants, and the resistance from these parties to the recovery actions, caused lengthy delays to the commencement of the trial,” Mr Parbery said.

“With the full weight of the evidence being laid before the defendants ahead of the trial, settlement negotiations were initiated as the trial commenced.

“This settlement is in the best interests of creditors and provides for the full repayment of the Commonwealth’s FEG debt, all other outstanding employee entitlements, and a full recovery for the majority of unsecured creditors.”

The Townsville-based refinery collapsed in January 2016 with more than $200 million in debts and leaving more than 800 people out of work.

Yesterday’s agreement came days after Mr Palmer reached another out-of-court settlement with the refinery’s largest creditor Aurizon, which was owed more than $90 million.

Attorney-General Christian Porter said that the agreement was an excellent outcome for taxpayers, workers and creditors.

“Especially those mum and dad business owners who could not have brought this action by themselves,” Mr Porter said.

“The deal is the largest FEG recovery ever achieved by the Commonwealth, with 100 per cent of funds recovered.”

Originally published as Clive Palmer reaches settlement agreement with Special Purpose Liquidators of Queensland Nickel