Mining magnate Joseph Gutnick faces $57 million bill
MINING magnate Joseph Gutnick is facing a $57 million bill that could leave the former rich list favourite in financial ruin.
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MINING magnate Joseph Gutnick is facing a $57 million bill that could leave the former rich list favourite in financial ruin.
Two years ago the man dubbed Diamond Joe after finding his fortune in diamond mining was worth a cool $255 million.
But sources say a judgment handed down by the Supreme Court of Victoria today could nearly wipe him out.
“If he has to stump up this money, he won’t be able to. He just doesn’t have it,” one source said.
In November Mr Gutnick told the Herald Sun he was going through “tough times”.
“It is well known that it’s difficult times for the resources industry and it affects me as well,” he said.
“If anyone’s in this industry they’re going through difficult times. To what extent is just speculation,” he said.
The Court of Appeal today refused Mr Gutnick leave to appeal a $57 million judgment against him and one of his companies finding it had “no real prospect of success”.
It means he is now personally liable to foot the multi-million dollar bill.
Mr Gutnick was taken to the Supreme Court by Indian company Indian Farmers Fertiliser Co-operative (IFFCO) for payment of a $57 million award issued by the Singapore International Arbitration Centre last May.
In that ruling it was found Mr Gutnick and his company had “induced, by fraudulent misrepresentation, certain purchases of shares in Legend International Holdings.”
It ruled he must pay $US28.05 million, while his company Legend International Holdings was liable for $US12.35 million.
The $US40.4 million ($AUD57.3 million) amount is expected to increase significantly after interest is applied.
Lawyers for Mr Gutnick argued that the award should be set aside, claiming it was contrary to public policy within the meaning of the International Arbitration Act.
Mr Gutnick said today he would seek leave to appeal the decision in the High Court.
He said the application would be heard on Friday.
In the meantime Mr Gutnick said negotiations with IFFCO were continuing.
Sources have told the Herald Sun the case is a must-win battle for the former Melbourne Football Club president.
The Herald Sun has been told that over the past year Mr Gutnick has let go of staff, including security detail, and moved out of his plush St Kilda Rd offices.
Mr Gutnick fell off the BRW Rich List last year after ranking 196th last year with an estimated wealth of $255 million in 2014.