Aurizon ready to fund pursuit of Clive Palmer

Rail freight operator Aurizon has prepared funds for court action in response to Qld Nickel’s collapse.

Three special purpose liquidators will pursue assets held by Mr Palmer. Picture: David Clark.

Rail freight operator Aurizon is ready to fund legal action pursuing Clive Palmer and his companies for up to $88 million in foregone revenue following the collapse of Queensland Nickel.

Aurizon has already made provision for $18 million in bad debt owed by QNI for outstanding rail haulage fees and estimates an additional $70 million in foregone revenue over the life of the contract.

The rail company’s position on the appointment of special purpose liquidators is outlined in the minutes of a meeting held earlier this month by Queensland Nickel liquidators FTI Consulting. The minutes also reveal ASIC is narrowing its investigations into Queensland Nickel, which went into liquidation with debts of hundreds of millions of dollars.

The three special purpose liquidators, whose appointments were approved in court a day after the meeting, will pursue assets held by Mr Palmer.

Part of their job is to recover almost $70 million in taxpayer funds that have been used to cover the unpaid entitlements of about 800 workers sacked from his Townsville nickel refinery.

Aurizon stands ready to fund the special purpose liquidators in the bid to claw back funds it is owed, but will most probably wait for a clearer picture to emerge in terms of what can be recovered. It’s common for creditors who provide funding to liquidators to seek court approval to treat their debt as a priority.

An Aurizon spokesman confirmed the company was seeking to protect its interests and recover outstanding monies.

“Aurizon is committed to working with the appointed liquidators through this process,” the spokesman said.

The special purpose liquidators will work alongside FTI, whose efforts will be focused on allegedly uncommercial transactions, including to Mr Palmer’s other businesses and donations to his Palmer United Party.

Mr Palmer has denied any wrongdoing and says he’s not worried about the prospect of being questioned in court, nor about being held personally liable for workers’ entitlements.

The outgoing MP has already announced plans to sue FTI for $1.2 billion.

AAP