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Category: Company News / Federal - State Issues / Federal Parliament / Clive Palmer

Palmer's Queensland Nickel may have to pay debts of liquidated aviation company

Wednesday, 16 Mar 2016 06:02:33

Palmer Aviation owes $26 million and has one asset - a luxury bombardier jet. (AAP: David Sproule/Crook Group)

Funds from federal MP Clive Palmer's ailing Queensland Nickel company could be used to pay debts owed by his aviation business, documents reveal.

Key points:

  • Palmer Aviation owes $26 million and has one asset - a luxury bombardier jet
  • Administrators are selling the jet but it is understood it may be worth less than half of Palmer Aviation's debt
  • Minutes of a Queensland Nickel creditors committee meeting reveal any shortfall would come from Queensland Nickel

Mr Palmer's business Palmer Aviation was put into liquidation late last month.

Queensland Nickel Sales (QNS), a Clive Palmer-owned company, has taken over as manager of the refinery after former manager Queensland Nickel — another of Mr Palmer's businesses — went into voluntary administration and sacked more than 200 workers in January.

Another 550 workers at the beleaguered facility near Townsville were made redundant last Friday.

Palmer Aviation owes $26 million and has one asset — a luxury bombardier jet.

Administrators FTI Consulting are selling the jet but it is understood it may be worth less than half of Palmer Aviation's debt.

Clive Palmer's refinery in crisis


Look back at the events that plunged Queensland Nickel into crisis.

Minutes of a Queensland Nickel creditors committee meeting lodged with the Australian Securities and Investment Commission (ASIC) reveal any shortfall would have to come from Queensland Nickel.

It is another financial blow to Queensland Nickel, which already owes about $100 million to creditors.

Mr Palmer has warned that production might not resume until the end of July unless a number of demands from administrators and the Queensland Government are met.

Documents lodged with ASIC also show the administrators will be paid more than $1.6 million for their management of the Yabulu refinery near Townsville, which lasted for a little over a month.

Meanwhile, Queensland Liberal National MP Ewen Jones told Federal Parliament the refinery had fallen victim to a "phoenix operation", where assets and cash are moved elsewhere before the collapse of a business.

Mr Jones said Mr Palmer had been acting as "shadow director" behind the scenes and that the role of the Fairfax MP in the issue could not "be underestimated".

AustraliaPlus


 

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