Chase on anew for Clive Palmer’s millions

The Turnbull government will press ahead to ­appoint a costly special liquidator to chase Clive Palmer’s assets.

Liquidators will try to recoup millions of dollars from Clive Palmer and his associated companies. Pictures: Kym Smith

The Turnbull government will press ahead to appoint a costly special liquidator to chase Clive Palmer’s assets, despite concern from creditors of his nickel refin­ery and existing liquidators.

Queensland Nickel’s liquidators, FTI Consulting, and representatives of the government’s Fair Entitlements Guarantee scheme met in Sydney yesterday after FTI told a creditors’ meeting last week it did not believe more liquidators were needed.

Employment Minister Michaelia Cash said the rare appointment was necessary but not because FTI had a conflict of interest­, the usual legal justifi­cation for a special-purpose liquid­ator.

“No, it is because it is so important (because of) the amount of taxpayer funds that will be ­expended to meet the outstanding employee entitlements,” she said. “Based on what we’ve seen to date, in terms of the report coming from the administrators, we need to go after whatever ­remaining assets there are and ­recoup the funds ...”

Senator Cash dismissed creditors’ concerns the appointment would duplicate the costs and process of the existing liquidator. “This is the commonwealth government saying we need to send a very clear example to corporate Australia,” she said.

QN was plunged into liqui­d­ation with debts of about $300 million at a creditors’ meeting in Townsville last week.

Almost 800 ex-workers are owed $74m in unpaid entitlements, of which about $68m will be paid by taxpayers under the guarantee scheme.

The Australian understands the government will apply to the Federal Court as early as next week to appoint PPB Advisory’s Stephen Parbery and two of his colleagues as special-purpose liquidators to try to recoup the money from Mr Palmer and his associated companies.

Contrary to Senator Cash’s comments, the creditors’ meeting heard that the government planned to rely on ­alleged conflict of interest to justify the appointment. FTI has legal advice that it has no conflict of interest.

Former QN internal auditor Doug Dunstan, a member of the committee of creditors, said there were concerns that the appointment of a special liquidator could dis­advantage small businesses owed money.

“The question remains about how the liquidators share res­ponsibilities, resolve professio­n­al differences which may in fact lead to litigation, and which liquidator is substantive with the other subordinate,” he said.

Meanwhile, one of Mr Palmer­’s planes, a Bombardier Global Express aircraft bought for $40m in June 2012, is ready for sale. Palmer Aviation went into adminis­tration the same day as QN and has since been liquid­ated. It owes about $26m: GE Commercial is the chief creditor.

The plane’s Palmer United Party livery has been removed but it still has “Palmer” on the wing tips, belly and side.