Clive Palmer to suffer reputational stigma if assets frozen, court hears

Clive Palmer and his companies would suffer a “significant stigma” if a judge freezes his personal and corporate assets, a court has heard.

Businessman Clive Palmer arrives at the Supreme Court in Brisbane today. Picture: AAP

Clive Palmer and his companies would suffer a “very significant reputational stigma” if a judge freezes his personal and corporate assets, a court has heard.

Liquidators for Mr Palmer’s collapsed Queensland Nickel company have applied to the Queensland Supreme Court to freeze assets connected to the former federal MP, to ensure Queensland Nickel creditors can eventually be paid.

But the businessman and resources magnate is fighting the action, and is today representing himself in court to oppose the lawsuit.

Barrister Dominic O’Sullivan QC, for some of Mr Palmer’s corporate interests including his flagship company Mineralogy, said the orders would result in Mr Palmer and his businesses suffering from a “real-world stigma”.

“An order would inevitably attract a very significant reputational stigma,” Mr O’Sullivan said. He said Mr Palmer had already reported that some of his companies, such as Fairway Coal, had been discriminated against, with some suppliers refusing to give the company a line of credit.

Mr O’Sullivan said it was “implausible” that cashed-up and asset rich companies such as Mineralogy and Waratah Coal would fail to pay what they owe Queensland Nickel’s creditors, if eventually ordered to do so.

But barrister Tom Sullivan QC, for special purpose liquidator PPB Advisory, said a freezing order should be made because Mr Palmer or his companies could dispose of their wealth, thwarting creditors’ attempts to claw back their debts from Queensland Nickel.

“There’s $350m in Mineralogy (after Mr Palmer had a large court win in Western Australia); tomorrow there may be nothing,” Mr Sullivan said.

“The way people may divest in this (situation) are legion.”

Mr Palmer audibly scoffed at this suggestion, while sitting at the bar table.

The former federal MP will address the court later today.

Queensland Nickel collapsed under its debts in early 2016, costing nearly 800 workers their jobs. About $300m is owed to creditors, including $70m to federal taxpayers who stepped in and paid for workers’ unpaid redundancy entitlements when the company failed.