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Clive & # 39; Palmer's contract for 135 million dollars before the fall of Queensland Nickel



When Queensland Nickel was heading for a fall, Clive Palmer signed a $ 135 million deal to pay for employees and suppliers, the court was told.

More light was thrown on the chaotic last days of the company during the second day of the court hearing at the Supreme Court in Brisbane on Wednesday.

The billionaire businessman is struggling with the huge federal government case against him and his nephew Clive & # 39; s Mensink for the collapse of the Townsville refinery in 2016 because QN liquidators are trying to recover about $ 200 million due to creditors.

On Wednesday, the liquidator lawyer, Graham Gibson, said Palmer was very busy at a time when administrators were called to take over.

"Interesting things took place at China First, which was entirely owned by Mr. Palmer," he said during his opening speech.

Mr Palmer's wife, Anna, was appointed the company's director, and Queensland Nickel agreed to buy a company share worth $ 135 million, he said.

Mr. Gibson said that QN has no money or assets to pay for shares, but the signed agreement contained a clause that prioritized China First payments to employees and suppliers if the refinery was in administration.

"Before the transaction … the paid-up capital of this company was $ 2," he said. "The shares did not bring benefits to QN, and the China First coal project was worthless.

"There is only one goal from this transaction … the goal was to prefer the interests of the Palmer party, Mr. Palmer, ultimately … in the interest of all other unsecured creditors.

"Extraordinary is in fact an understatement."

Mr. Palmer, who represents himself, did not go to court on Wednesday.

Justice Debra Mullins noticed the absence in the files, but ordered that the trial would continue without him.

Earlier, the court heard that QN is selling insolvent months before the call of administrators.

They finally decided that the company was too broke to continue and close it in April 2016.

The process continues.


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