War chest in place to pursue Palmer

Liquidators for Queensland Nickel expect efforts to recover millions of dollars will take a large amount of time.

Clive Palmer, flanked by security guards, at the Federal Court in Brisbane last month. Picture: AAP.

Liquidators for Queensland Nickel have been given a war chest to wrestle back hundreds of millions of dollars Clive Palmer’s other companies owe creditors.

FTI Consulting this week approved financial backing from dispute resolution funder Vannin Capital Australia to pursue companies including Mr Palmer’s Mineralogy and Palmer Leisure Coolum for $180 million in unpaid loans.

The liquidators expect a large amount of time will be required to investigate the process.

The agreement will also help cover the costs of several matters related to QN currently before Justice John Bond in the Queensland Supreme Court in Brisbane. However, the funding won’t be used to defend legal action brought by Mr Palmer against the liquidators and administrators personally.

QN owes more than $220 million to unsecured creditors as well as $70 million to the federal government, who covered workers’ entitlements after the company collapsed earlier this year.

AAP