You are using an older browser version. Please use a supported version for the best MSN experience.

Clive Palmer and Clive Mensink sued by liquidators over Queensland Nickel

ABC News logo ABC News 5/07/2017
Clive Palmer. © Dan Peled/AAP Clive Palmer.

Clive Palmer, his nephew Clive Mensink and 19 others are being sued for about half-a-billion dollars by liquidators appointed by the Federal Government.

PPB Advisory lodged a claim with the Supreme Court of Queensland to regain money for Queensland Nickel (QNI) creditors, employee entitlements and compensation.

The receivers allege Mr Palmer and Mr Mensink breached their duties as QNI directors, and traded while insolvent.

PPB Advisory is seeking a declaration from the court that Mr Palmer was a shadow director of QNI, and should pay more than $207 million in damages.

The company also wants $110 million in compensation from Mr Mensink and $25 million from former QNI managing director Ian Ferguson. QNI collapsed last year with $300 million in debts and putting more than 800 people out of work.

Liquidators determined the company was insolvent in October 2015 with debts of about $13 million.

The ABC understands the Federal Government has funded the liquidators to regain $74 million of taxpayer-funded employee entitlements from the company.

North Queensland senator Ian MacDonald said it was the first time the Government had taken such action.

"The Commonwealth as a creditor is entitled to try and recover that $74 million of taxpayers money from Mr Palmer if it can be proved that he breached the Corporations Act," Senator MacDonald said.

"The liquidator believes that there is a case against Mr Palmer that he did breach the Corporations Act." Earlier this week it was revealed Mr Palmer claimed $1,400 in taxpayer funded airfares for the same day he was in Canberra for a High Court bid to avoid being questioned by liquidators over the collapse of Queensland Nickel.

More From ABC News

image beaconimage beaconimage beacon