Befuddled Clive Palmer’s moment of clarity with move on refinery’s $135m

Court papers show Clive Palmer, while claiming to be addled by painkillers, orchestrated a complex corporate move.

Former federal MP Clive Palmer.

Queensland Nickel’s liquidators threatened to press for the arrest of Clive Palmer this week when the former MP claimed he was too sick to front court.

The revelation is contained in new Federal Court documents, which also confirm that Mr Palmer — while using the morphine painkiller he claims harms his memory and judgment — orchestrated a complex corporate manoeu­vre to try and squeeze $135 million from his collapsed QN, issued high-level legal advice, and tweeted about “a ­certain confectionary business”.

An affidavit filed by King & Wood Mallesons partner Emma Costello, for special purpose liquidators PPB Advisory, said Mr Palmer’s lawyers only warned liquidators after 5pm on Monday that Mr Palmer was too sick to testify­ on Tuesday.

“It is a matter for Mr Palmer to make the required application to demonstrate that he has a reasonable excuse not to attend tomor­row,” Ms Costello wrote to Sam Iskander, Mr Palmer’s solicitor, late on Monday night.

“If an application is not filed and if Mr Palmer does not attend tomorrow as ordered by the Federal­ Court we will seek an order for his arrest.” The Federal Court has already issued two arres­t warrants for Mr Palmer’s holidaying nephew Clive Mensink, who has repeatedly flouted orders to return to Australia to give evidence at the public examination into QN’s collapse.

The Townsville refinery compan­y failed last year, costing creditors $300m and leaving nearly 800 workers jobless. Mr Mensin­k was the sole registered director when QN tanked, but liquidators allege Mr Palmer acted as a shadow director and actually controlled the company.

The liquidators didn’t have to apply for an arrest warrant for Mr Palmer, because he was eventually ordered to face court on Wednesday by Federal Court judge John Dowsett, who decided he was physically capable.

Mr Palmer, clutching a sick bag and a breathing apparatus, staggered into the witness box, after his barrister Andrew Boe said his painkiller, the morphine-based Targin, had badly affected his memory. Mr Palmer said his mind was so addled by the drug he could not even remember his Amex PIN.

But the medication — which Mr Palmer’s doctor Reza Madah said he had been taking since his gallstones were removed in March — didn’t stop him from ordering a complex and secret corporate move to appoint his friend, colourful businessman Domenic Mar­tino, as controller of his China First company, last week.

China First claims it is owed $135m by QN, and Mr Martino also tried to kill a $105m lawsuit launched by general purpose liquidators FTI Consulting against Mr Palmer’s flagship company Mineralogy. Mr Palmer is due back in the Federal Court witness box as early as today.