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Category: Clive Palmer / Business, Economics and Finance / Mining Industry

Queensland Nickel administrators recommend liquidation

Tuesday, 12 Apr 2016 07:55:46

Clive Palmer's Queensland Nickel was put into voluntary administration in January. (AAP: Dave Hunt)

The administrators of Clive Palmer's Queensland Nickel have recommended liquidating the company in a report to creditors.

The company, which previously ran the MP's Yabulu nickel refinery, owes in excess of $100 million to creditors, including hundreds of workers who have been laid off.

FTI Consulting's final report was handed down on Tuesday morning, ahead of a vote by creditors on April 22 on whether to place the company into liquidation.

The report said unsecured creditors, including former employees, could get anywhere from nothing to 52.31 cents in the dollar of what they were owed.

Four Corners on Monday night revealed Mr Palmer approved millions of dollars in expenditure when he was not a listed director of Queensland Nickel.

Mr Palmer has denied operating as a shadow director at Queensland Nickel before it was placed into voluntary administration.

"Our investigations indicate certain persons appointed as a director, or whom may have acted in the capacity of a director, may have contravened sections ... of the Act," the executive summary read.

"We have identified significant transactions in value and quantum entered into by QN that appear to be both uncommercial and director-related transactions.

"These transactions could be recovered in a liquidation scenario."

Palmer: Not my decision to delay entitlements

If the company goes into liquidation, the $60 million bill for worker redundancy entitlements could fall to the Federal Government.

Mr Palmer said it was not his decision to delay paying the entitlements of sacked Queensland Nickel employees.

"We did not make any decision not to pay people entitlements — that was the administrator," he said.

"On the 10th of March I had $23 million to inject into the operations.

"He [the administrator] was required under the joint venture agreement to transfer the funds from the company's account to the new manager.

"He refused to do so. He decided to sack 550 people. He decided not to pay entitlements.

"This is a great scandal, misreported in the press right across the country, that I made a decision not to pay workers' entitlements. That is complete rubbish."

External Link: Report recommending the liquidation of Queensland Nickel

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