Coal baron Nathan Tinkler is in trouble yet again, with liquidators launching legal action against the mining investor for allegedly allowing one of his businesses to trade while insolvent.
The development follows an order made by the New South Wales Supreme Court earlier this week to approve a financial deal between Blackwood Corporation and the liquidators of Tinkler’s business Mulsanne Resources.
The order follows a failed deal between the two companies, after Mulsanne did not come up with $28.4 million worth of Blackwood shares despite agreeing to do so.
Ferrier Hodgson has confirmed it is pursuing legal action against Tinkler and two former Mulsanne Resources directors, Matthew Keen and Troy Palmer.
“Based on the evidence obtained from the public examinations and documents provided by Mulsanne’s directors and former secretary, the liquidators formed a view that there is a case to answer for insolvent trading and breaches of directors’ duties.”
Ferrier Hodgson said Blackwood is owed the $28.4 million, while other creditors are owed approximately $30,000.
In a statement provided to SmartCompany this morning, a spokesperson for Mulsanne said the company will fight the charges.
“The directors of Mulsanne strongly deny allegations of trading while insolvent and will strongly defend any legal action instigated by the liquidators.”
Blackwood also said in a statement if the directors and officers are found liable for insolvent trading, the court “may make compensation orders against them personally for which they will be jointly and severally liable”.
“Blackwood will continue to monitor the recoverability of the monies owed to the Company,” it said.
The legal action concludes a string of events reaching back to last year, when Mulsanne said it would acquire more than 94 million shares in Blackwood. However, it failed to hand over the cash and couldn’t meet an extended deadline.
Tinkler was examined by the court earlier this year regarding the failed deal.
The suit follows a number of disappointing developments for Tinkler, including the forced sale of several of his private assets including a private jet, and several racehorses.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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