Nathan Tinkler facing bankruptcy over $2.8 million debt

Tuesday, 9 Feb 2016 14:30:16

Nathan Tinkler's lawyers argued that he was solvent.

A Federal Court ruling has paved the way for controversial mining magnate Nathan Tinkler to be declared bankrupt.

The court this morning ordered that a sequestration order be made against Mr Tinkler's estate.

He had been fighting a bankruptcy notice issued by GE Commercial in June 2015.

Court documents show Mr Tinkler owes $2.8 million to GE.

Mr Tinkler's legal team had argued that he was solvent and the creditor's notice was defective.

However, Federal Court Judge Jacqueline Gleeson found that the evidence did not support the argument of solvency.

She also ruled that proceedings under the sequestration order be stayed for 21 days.

It is expected an appeal will be lodged.

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