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Category: Courts and Trials / Company News / Mining Industry / Clive Palmer

Queensland Nickel refused finance before collapse, court hears

Tuesday, 6 Sep 2016 12:04:05 | Andrew Kos

Daren Wolfe said Queensland Nickel had serious cashflow problems by November. (ABC News: Andrew Kos)

Queensland Nickel's financial position was so bad in the months before it collapsed that the company approached all of the country's big four banks for finance, the Federal Court has heard.

Former chief financial officer Daren Wolfe is being examined for the second day over Queensland Nickel's demise.

The court was told about a financial forecast prepared in September last year that showed the company's cash deficit was set to continue until April this year.

The company approached a number of domestic and international banks for finance but by December they had all declined.

Mr Wolfe said he discussed the cash shortfall with Queensland Nickel owner Clive Palmer and managing director Clive Mensink, but the issue of insolvency was not raised until December or January.

The court was told the cashflow problems were so serious by November that the company did not have the funds to pay staff, so Mr Palmer made a $US1.9 million injection to cover the company's payroll.

Clive Mensink somewhere in Europe, court told

The court was also told of delays in the purchase of materials for the refinery's machinery, but Mr Wolfe denied it was because of financial strain.

He said it was due to the fact that Mr Palmer was a fan of "just in time" purchasing.

Mr Wolfe was also questioned over the whereabouts of Mr Mensink and told the court he was overseas "somewhere in Europe".

He said he did not know when Mr Mensink was due to return.

The hearing continues.

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