Clive Palmer coal companies made ‘sham’ asset claims for $100m

Coal companies controlled by Clive Palmer made ‘sham’ creditor claims on Queensland Nickel just before it collapsed.

The battle over one of Clive Palmer’s private jets has deepened. Picture: Tara Croser.

Coal companies controlled by Clive Palmer made “sham” creditor claims on the assets of Queensland Nickel four days ­before it collapsed in a bid to score more than $100 million, liquidators allege.

Barrister for liquidator FTI Consulting Roger Derrington QC told Queensland Supreme Court judge John Bond that claims by Mr Palmer’s Waratah Coal and China First should be declared void.

Justice Bond: “In other words, you say the steps that apparently make them creditors are shams?”

Mr Derrington agreed, saying that four days before Queensland Nickel, which ran Mr Palmer’s Yabulu Townsville nickel refinery, was placed in voluntary administration in January, the two companies lodged claims to be secured creditors in a “purported deal”.

Waratah Coal, which is claiming $100m, offered its coal tenements in the Galilee Basin as security and Queensland Nickel agreed to buy two billion China First shares for $135m. “(But) no money was ever paid,” Mr ­Derrington said.

Mr Palmer’s counsel, headed by Howard Insall QC, said both companies were creditors.

The stoush is one of a slew of legal skirmishes arising from the liquidation of Queensland Nickel, to be heard by Justice Bond in coming weeks.

Mr Derrington wants the Waratah Coal and China First matter given priority, but Mr ­Insall is pressing for FTI Consulting to be removed as liquid­ator because of alleged conflicts of interest. Mr Insall said it was in the public interest to hear the ­latter case as swiftly as possible, alleging FTI’s scathing and ­“extraordinary” creditors’ report “shows they are not impartial”.

FTI’s report, delivered in April, alleged Mr Palmer was a shadow director of Queensland Nickel and should be investi­g­ated for possible breaches of his director’s duties and for alleged insolvent trading.

Mr Palmer has denied all wrongdoing.

Justice Bond has earmarked a string of court dates next month to hear continuing arguments, and expressed frustration yesterday that neither side seemed willing to compromise on procedural matters.

Meanwhile, the battle over one of Mr Palmer’s private jets has deepened. In 2012, financier GE Capital, now called Harren­vale Australasia, loaned Palmer Aviation $US24.5m to buy a 2001 Bombardier Global ­Express plane.

Palmer Aviation collapsed into liquidation in February, and the plane is for sale.

Court documents show it was valued last year by two separate companies at up to $US15m on the open market and to $US13m if subject to a fire sale.

Harrenvale Australasia is chasing more than $26m from Mr Palmer’s QNI Metals and QNI Resources, claiming that Queensland Nickel guaranteed the 2012 loan. The matter will be heard tomorrow.