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Palmer companies win court battle

AAP logoAAP 29/07/2016 By Alexandra Patrikios

Two of Clive Palmer's companies have successfully applied to set aside a money lender's statutory demands over almost $26 million used to buy a private jet.

QNI Resources and QNI Metals applied to the Brisbane Supreme Court to set aside a statutory demand from Harrenvale Australasia, formerly GE Capital, over the $25.8 million debt.

A loan for the amount was taken out in June 2012 by Palmer Aviation, which went into liquidation in February, to purchase the Bombardier aircraft.

Justice Peter Lyons granted the applications at a hearing on Friday after finding they satisfied the low threshold for a "genuine dispute".

It came after barrister Howard Insall told the court a "letter of acknowledgment" sent to the money lender didn't compel the two companies, as parties to a joint venture of which Queensland Nickel was the manager, to pay.

Rather, the document's intention was to acknowledge that QN would be the guarantor, he said.

Counsel for the money lender had argued the letter effectively made the two companies liable through their connection to QN.

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