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Substantial return for creditors: Culleton

AAP logoAAP 3/11/2016

One Nation senator Rod Culleton says he's committed to making sure creditors seeking money from his private company are repaid.

Liquidators were appointed to Elite Grains in November 2013 and some of its creditors, who met in Perth on Thursday, believe they have little chance of getting their money back.

But Senator Culleton rejects this, saying he's "committed to working closely with the liquidator to ensure a substantial return is made to the creditors".

One creditor, who attended Thursday's meeting, said Elite Grains officially owed dozens of people more than $6 million and that other suppliers and service providers had written off their debts.

The creditor, who did not want to be named, said he did not believe Senator Culleton's claim he had $34 million to transfer into Elite Grains.

"I'm not going to comment on every aspect of my on-going battle to obtain justice for myself and 4000 other farmers," Senator Culleton said in a statement issues late on Thursday.

The debts owed by Elite Grains are not the senator's only woes.

Attorney-General George Brandis announced this week Senator Culleton would likely face a High Court challenge to his eligibility to be a member of parliament because he had been convicted of larceny when the July federal election was called in May.

The 2014 NSW conviction over a $7.50 key he took from a tow truck driver who was trying to repossess a lease car was later annulled as it was recorded in his absence after he failed to attend court.

While Senator Culleton pleaded guilty to the charge at a subsequent hearing no conviction was recorded.

He still faces a stealing charge in WA relating to a $27,000 hire car, which he allegedly surrounded with hay bales to thwart bank-appointed receivers during foreclosure proceedings.

The matter was set to go to trial in Perth Magistrates Court in September but was delayed.

A new trial date will be set on November 15.

The Australian constitution bans people from being federal MPs if they are awaiting or serving sentences for crimes that carry sentences of 12 months' jail or more - which applies to both charges.

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