Former billionaire Nathan Tinkler has finally reached a settlement with Blackwood Corporation, the company at the centre of his financial woes.
The two parties have been battling each other in court for months after a failed deal, which would have seen Tinkler’s company Mulsanne Resources pay $28.4 million for Blackwood shares. Mulsanne never came up with the money.
As a result, Blackwood initiated legal action against both Mulsanne and Tinkler. Liquidators also launched legal action against Tinkler, claiming he allowed Mulsanne to trade while insolvent.
However, the two parties have reached a deal – the former billionaire will need to pay $12 million by the end of the month.
Blackwood said on Monday the proposed settlement would include abandoning legal action against Mulsanne, if payment is made by the deadline.
Now, Tinkler has confirmed the settlement.
”The Tinkler Group is pleased to have agreed to settle this matter to each side’s satisfaction,” a spokesperson said in a statement.
”We look forward to fulfilling the agreement over the next month.”
The $12 million payment can be made by any companies associated with Tinkler’s name. If he doesn’t pay by July 1, legal action against the company will continue.
Tinkler used to be one of the country’s youngest billionaires thanks to his 21% stake in Whitehaven Coal, which is now only worth $480 million – less than half of what it was worth 12 months ago.
Financial troubles have forced Tinkler to sell off assets and properties, including his horse breeding farm and a rural property in Queensland, which he recently put on the market.
In December, receivers also seized some of Tinkler’s assets including a private jet and helicopter.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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