Palmer ordered to repay $100m in Queensland Nickel case
Liquidators FTI Consulting said that, subject to recovery of the funds, they would be applied towards priority costs, employees and remaining unsecured creditor claims (collectively estimated to exceed $100 million) linked to the refinery operator’s collapse.
“This is a great outcome for creditors of QNI,” liquidator John Park said. “After five long years of formal proceedings, we hope today’s decision will put an end to this matter and we can proceed to finalise payments to creditors and finalise a long and and complicated liquidation.”
The payment order was made on Friday after the Court of Appeal found an earlier judgment in parent company Mineralogy’s favour could not be sustained.
Justices Hugh Fraser, Philip Morrison and Martin Burns concluded that the argument that the loans were made by joint venture companies did not stack up and that they were made by QNI as trustee, and that QNI was entitled to have them repaid.
The parties have until July 16 to file any responses to the decision.
The collapse of the Yabulu nickel refinery company in 2016 left about 800 people out of work and has been the subject of a series of legal actions involving Mr Palmer and the liquidators.
Mr Palmer settled most of the $200 million lawsuit in 2019, including an agreement to repay $66 million in worker entitlements paid out by the government.
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