Evidence reprieve for Palmer ally

Clive Palmer’s companies will abandon a significant part of their defence in the Queensland Nickel liquidation trial.

Clive Palmer. Picture: AAP

Clive Palmer’s companies will abandon a significant part of their defence in the Queensland Nickel liquidation trial, giving one of the mining magnate’s business allies a reprieve from giving ­evidence.

Lawyers acting for Mr Palmer’s companies yesterday submitted a revised defence in the case, which has been under way in the Supreme Court in Brisbane since July 15, interrupted by unavailable witnesses, settlements and amended claims.

If the revised defence is accepted by liquidators, who are seeking about $100 million for creditors, Mr Palmer’s friend, Domenic Martino, will no longer be required to give evidence about being appointed controller of Mr Palmer’s China First mining venture and allegedly making transactions that favoured the billionaire businessman to the detriment of creditors.

The claims relate to a transaction entered into by Queensland Nickel and China First on January 13, 2016 — five days before the refinery went into administration — in which Queensland Nickel subscribed to $135m in shares.

Later, in May 2017, Mr Palmer appointed Mr Martino controller of Queensland Nickel and China First. He let the two companies enter into a settlement deed that lowered the supposed debt Queensland Nickel owed China First by just $10m to $125m.

It also released any claims against Mr Palmer, as director of his flagship company Mineralogy and relieved Mineralogy of $105m it allegedly owed to Queensland Nickel.

The liquidators contend “no controller acting reasonably and in good faith” would have agreed to the settlement and the money should be paid back to the company and dispersed among remaining creditors.

Mr Palmer’s companies claim Mr Martino was familiar with the operations of Queensland Nickel and the releases were justifiable and a “good commercial result”.

The defence changes would mean they no longer rely on the settlement deed in evidence.

Barrister Chris Ward, acting for Mr Palmer’s companies, yesterday said it was the “only substantive action of Mr Martino’s that remained live in the proceeding”, meaning he should no longer be required to testify.

Barrister Graham Gibson for the general purpose liquidators said they had been made aware of the detail of proposed changes to the defence only yesterday morning.

The liquidators will submit their formal response to the proposed changes today.

The general purpose liquidators have sought a declaration from the court that Mr Martino’s appointment as controller of Queensland Nickel was invalid.

The trial has been adjourned until Monday.