Clive Palmer pursuit: assets may be frozen by QN liquidators

The MP for Fairfax and self-proclaimed billionaire faces a long series of legal raids on his business and personal empire

Clive Palmer rejects any responsibility for the downfall of Queensland Nickel. Picture: Kym Smith

Clive Palmer’s assets could be ­frozen while liquidators of his stricken Queensland Nickel pursue him for allegedly breaching ­director’s duties before its collapse.

Yesterday, hundreds of Mr Palmer’s former employees and suppliers cheered as they voted unanimously to wind up QN at a packed creditors’ meeting in Townsville, three months after the first of nearly 800 workers was sacked from the north Queensland refinery.

“It’s now time to start to chase the money,” liquidator John Park, senior managing director of FTI Consulting, told the meeting.

The federal MP for Fairfax and self-proclaimed billionaire faces a long, expensive and potentially devastating series of legal raids on his business and personal empire as liquidators begin the mammoth task of attempting to claw back the $300 million owed by QN. Mr Palmer, the ultimate owner and ­alleged shadow director of QN and its parent companies, and his nephew Clive Mensink, the sole official director, are alleged to have “recklessly” breached their directors’ duties by siphoning $224m from QN’s coffers to Palmer-­related companies in the lead-up to the operation’s crash.

Loans of $189m were then forgiven, a move being looked at by the tax office, which had a repre­sentative at yesterday’s meeting.

Mr Palmer and Mr Mensink may also be personally liable for any debts incurred by QN after it became insolvent, which FTI Consulting’s forensic investigators ­believe was November 27 last year.

Mr Park said liquidators had “myriad” possible legal options but needed to prioritise and secure funding from government, trade creditors or, as a last resort, private litigation financiers for what were likely to be “disputed, expensive and lengthy” court actions.

The first salvo is already under way: call notices demanding payment of $190m from QNI Metals and QNI Resources, the refinery parent companies controlled by Mr Palmer. If the demands are ­upheld by a court and not paid, liquidators could then sell off the companies’ assets, including the refinery — valued by Mr Palmer at $1.9 billion — and a central Queensland cattle station.

Former worker David Marks urged liquidators to try to avoid splitting and selling the refinery, dooming it to permanent closure, and suggested they instead “sell a few mansions” belonging to Mr Mensink and Mr Palmer.

Liquidators will consider demanding­ the repayment to QN of cash funnelled to Mr Palmer’s flagship Mineralogy, and his struggling Coolum golf resort. “That’s high on the agenda,” Mr Park said.

Liquidators could also apply to a court to freeze Mr Palmer’s personal assets — which includes a property portfolio worth $42m — while pursuing prosecution for ­alleged breaches of director and fiduciary duties under the Corpor­ations Act, he said. “It’s something we’ll be looking at. We’ve got to determine what’s the sweetest route (to recoup the debts).”

Liquidators are also likely to need to gather more evidence, which would occur during a revealing­­ public examination in which Mr Palmer and Mr Mensink would be forced to testify under oath about their role in the corporate collapse.

Mr Palmer rejects any responsibility for the downfall of QN,­ denies­ he was a shadow director and rubbishes allegations he wrongly siphoned cash to his other businesses, including his political party. Mr Mensink also denies wrongdoing, and told the Queensland Supreme Court this week that QN’s debts would “probably” never be paid.

Neither responded to questions from The Weekend Australian.

Taxpayers will pick up $68m of the $74m owed by QN in entitlements to the almost 800 workers who lost their jobs.