Palmer companies win court battle

Two of Clive Palmer’s companies have had a court win in a stoush over $26 million used to buy a flashy jet.

A loan was taken out in June 2012 by Palmer Aviation, which went into liquidation in February. Picture: Tara Croser.

Clive Palmer has fended off a demand to repay the $26m loan he used to buy Palmer United Party’s flashy Bombardier private jet.

Queensland Supreme Court judge Peter Lyons this afternoon agreed to set aside statutory demands from financier Harrenvale Australasia that required Mr Palmer’s companies QNI Metals and QNI Resources to hand over nearly $26m.

The cash was loaned to another Palmer-controlled entity, Palmer Aviation, in 2012 so it could splash out and buy the 2001 Bombardier Global Express Aircraft. Mr Palmer registered the plane, which has Rolls Royce engines and is still emblazoned with yellow “Palmer United” livery, in the Isle of Man.

But Palmer Aviation collapsed into liquidation in February, driving Harrenvale – formerly GE Commercial Australasia – to chase its cash. Mr Palmer’s other stricken company Queensland Nickel Pty Ltd had provided a guarantee for the 2012 loan, but it also fell into liquidation earlier this year.

Harrenvale issued statutory demands to Queensland Nickel’s parent companies QNI Metals and QNI Resources, but Mr Palmer’s barrister Howard Insall SC today argued the debt should not be collected directly from those corporations.

Justice Lyons today ruled that because there was a “genuine dispute” over whether the pair of Palmer-controlled companies was liable to pay the debt, the statutory demands should be set aside.

The ruling means Mr Palmer has won a battle in the many-fronted legal war sparked by the collapse of parts of his business empire this year. However, the fight over the Bombardier is not over. Harrenvale may issue new statutory demands Queensland Nickel Pty Ltd, in liquidation, which may in turn chase QNI Metals and Resources for the cash.

If QNI Metals and QNI Resources fails to pay any future statutory demand, the companies could be wound up, threatening Mr Palmer’s ownership of his Townsville nickel refinery.

The Bombardier itself is in the control of liquidators FTI Consulting, at Sydney airport. It’s understood it is close to being sold.

When it was valued last year, by the Dominion Group and Slattery, it was given a market value of up to $US15m. The two companies estimated the value it would command in a liquidation would range between $US11.5m and $US13m.