Qld Nickel administrators to fight Palmer’s lawsuit

Qld Nickel’s administrators will fight a $1.2bn lawsuit from Clive Palmer, if he proceeds with it.

Queensland Nickel’s administrators say they will fight a $1.2 billion lawsuit from Clive Palmer, if he actually proceeds with it.

Mr Palmer on Tuesday announced the lawsuit against FTI Consulting, which took over control of Queensland Nickel in January after it was placed in voluntary administration.

Queensland Nickel, which operated the failed Yabulu nickel refinery, is now being liquidated as FTI seeks to claw back some of the $200 million owed to creditors.

In a press release, Mr Palmer accused FTI of aiding and abetting a breach of trust and causing serious breaches of the Queensland Nickel Joint Venture Agreement by Queensland Nickel.

The MP and businessman also said FTI should not have closed down the plant and sacked hundreds of workers.

But an FTI spokesman described the possible lawsuit as “completely without foundation”, and questioned whether Mr Palmer would actually go ahead with the lawsuit.

“We intend to strenuously defend these allegations from Mr Palmer, if he does in fact commence proceedings,” he said.

“We note that he recently commenced a court application against the Administrators which he withdrew only hours before the judgment was due to be delivered.” Mr Palmer says two of his companies will serve a statement of claim against FTI “in coming weeks”.

AAP