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| Queensland Nickel liquidators pursue $300m from Clive Palmer's companies | |
| (35 minutes later) | |
| The liquidation of Clive Palmer’s Queensland Nickel opens the way for the potential pursuit of up to $300m from his other companies. | The liquidation of Clive Palmer’s Queensland Nickel opens the way for the potential pursuit of up to $300m from his other companies. |
| But a pall could be cast over a takeover bid of the refinery, with new laws allowing the Queensland government to pursue those who profit from failed resource projects that leave expensive cleanup bills. | But a pall could be cast over a takeover bid of the refinery, with new laws allowing the Queensland government to pursue those who profit from failed resource projects that leave expensive cleanup bills. |
| The laws have been hailed as a landmark reform by legal bodies and conservationists but Asian backers of the worker-led plan could baulk at the risk of being lumbered with rehabilitation costs of at least $100m. | The laws have been hailed as a landmark reform by legal bodies and conservationists but Asian backers of the worker-led plan could baulk at the risk of being lumbered with rehabilitation costs of at least $100m. |
| In a unanimous show of hands at a meeting on Friday, creditors – including almost 800 sacked refinery workers – voted for liquidation. | In a unanimous show of hands at a meeting on Friday, creditors – including almost 800 sacked refinery workers – voted for liquidation. |
| Not a single hand was raised when the administrator, John Park, from FTI Consulting, asked if anyone was against Queensland Nickel being wound up. | Not a single hand was raised when the administrator, John Park, from FTI Consulting, asked if anyone was against Queensland Nickel being wound up. |
| “It’s now time to start to chase the money,” Park told creditors after the vote. | “It’s now time to start to chase the money,” Park told creditors after the vote. |
| FTI has been appointed liquidators to try to recover some money for workers and other creditors, who are owed almost $200m. | FTI has been appointed liquidators to try to recover some money for workers and other creditors, who are owed almost $200m. |
| Related: Queensland Nickel: federal government to appoint its liquidator to pursue Clive Palmer | Related: Queensland Nickel: federal government to appoint its liquidator to pursue Clive Palmer |
| Park said there were “significant, voidable transactions” Queensland Nickel had made to interests related to the company’s sole appointed director, Clive Mensink, and his uncle, Palmer, who, FTI contends, acted as a shadow director. | Park said there were “significant, voidable transactions” Queensland Nickel had made to interests related to the company’s sole appointed director, Clive Mensink, and his uncle, Palmer, who, FTI contends, acted as a shadow director. |
| Park said “$224m came out of Queensland Nickel over preceding years” leading up to administration, which, he believed, “a liquidator will be able to pursue”. | Park said “$224m came out of Queensland Nickel over preceding years” leading up to administration, which, he believed, “a liquidator will be able to pursue”. |
| “As to the recovery, that will be unknown and, no doubt, litigated,” he said. | “As to the recovery, that will be unknown and, no doubt, litigated,” he said. |
| Before the meeting took place, the Queensland parliament passed the “chain of responsibility” laws in the early hours of Friday morning, extending legal liability to those who, the environment minister, Steven Miles, said had “significant influence over environmental management decisions”. | Before the meeting took place, the Queensland parliament passed the “chain of responsibility” laws in the early hours of Friday morning, extending legal liability to those who, the environment minister, Steven Miles, said had “significant influence over environmental management decisions”. |
| This could be individual directors, executives or shareholders “hiding behind a business which is doing the wrong thing”, Miles said. | This could be individual directors, executives or shareholders “hiding behind a business which is doing the wrong thing”, Miles said. |
| The laws were prompted by the risk of taxpayers footing the cleanup bill if Palmer’s Yabulu refinery shuts permanently, as well as other cases of collapsed mining companies and shuttered mines, which could cost the government more than $1bn. | The laws were prompted by the risk of taxpayers footing the cleanup bill if Palmer’s Yabulu refinery shuts permanently, as well as other cases of collapsed mining companies and shuttered mines, which could cost the government more than $1bn. |
| However, Sister City Partners, which was attempting to mount a takeover of the business with equity stakes for QN’s 800 workers, has cited the new laws as a “deal killer” and suspended its plans. | However, Sister City Partners, which was attempting to mount a takeover of the business with equity stakes for QN’s 800 workers, has cited the new laws as a “deal killer” and suspended its plans. |
| SCP’s Warwick Powell said Hong Kong backers, in a phone hook-up just hours after the laws were passed, were reluctant to run the risk of being captured by them if the venture failed, despite “the comforting words from politicians”. | SCP’s Warwick Powell said Hong Kong backers, in a phone hook-up just hours after the laws were passed, were reluctant to run the risk of being captured by them if the venture failed, despite “the comforting words from politicians”. |
| Powell said he saw the buy-back as the “only viable way” of reopening the refinery, as doubts linger over Palmer’s attempts to do the same with a new company and a clean slate. | Powell said he saw the buy-back as the “only viable way” of reopening the refinery, as doubts linger over Palmer’s attempts to do the same with a new company and a clean slate. |
| But the “sweeping nature” of who could be targeted under the legislation raised “uncertainties [that] surpass our partners’ appetites, as things stand”, he said. | But the “sweeping nature” of who could be targeted under the legislation raised “uncertainties [that] surpass our partners’ appetites, as things stand”, he said. |
| “The bill’s intentions are noble and few would disagree with them in principle,” he said. | “The bill’s intentions are noble and few would disagree with them in principle,” he said. |
| “[But] the can of worms that is potentially opened up simply raises too many questions, too many unknown risks to future investors and financiers in relation to the buy-back.” | “[But] the can of worms that is potentially opened up simply raises too many questions, too many unknown risks to future investors and financiers in relation to the buy-back.” |
| Veteran environmental campaigner, Drew Hutton, said the laws were essential in tackling “the biggest public scandal that I have seen in my over 40 years of public life in Queensland”. | Veteran environmental campaigner, Drew Hutton, said the laws were essential in tackling “the biggest public scandal that I have seen in my over 40 years of public life in Queensland”. |
| Hutton said taxpayer-funded cleanups after failed mining companies amounted to “many billions of dollars of rorting that’s gone on and it’s the public that’s going to have to pick up the cost of it”. | Hutton said taxpayer-funded cleanups after failed mining companies amounted to “many billions of dollars of rorting that’s gone on and it’s the public that’s going to have to pick up the cost of it”. |
| Miles said those who were “diligent in their environmental responsibilities have absolutely nothing to be concerned about, whereas those who have been reckless might find themselves connected by the chain of responsibility”. | Miles said those who were “diligent in their environmental responsibilities have absolutely nothing to be concerned about, whereas those who have been reckless might find themselves connected by the chain of responsibility”. |
| The decision clears the way for the liquidator, FTI, and the federal government to seek recovery of the debts, including through legal action targeting Palmer’s companies and potentially his personal wealth. | The decision clears the way for the liquidator, FTI, and the federal government to seek recovery of the debts, including through legal action targeting Palmer’s companies and potentially his personal wealth. |
| Palmer has denied suggestions he wrongly siphoned cash from the business and has sought an injunction to stop FTI demanding $190m from QN parent companies. | Palmer has denied suggestions he wrongly siphoned cash from the business and has sought an injunction to stop FTI demanding $190m from QN parent companies. |
| The commonwealth will be chasing up to $73m it will be forced to pay to cover the entitlements of almost 800 nickel workers who lost their jobs. | The commonwealth will be chasing up to $73m it will be forced to pay to cover the entitlements of almost 800 nickel workers who lost their jobs. |
| Jo-Anne Bragg, from the Environmental Defenders Office Queensland, said there were 15,000 abandoned mining sites in the state “with liability to the public purse of over $1bn”. | Jo-Anne Bragg, from the Environmental Defenders Office Queensland, said there were 15,000 abandoned mining sites in the state “with liability to the public purse of over $1bn”. |
| “We’re counting on the state government and the chain of responsibility to help stop more projects being added to this list,” Bragg said. | “We’re counting on the state government and the chain of responsibility to help stop more projects being added to this list,” Bragg said. |
| The environmental risks in a shutdown of the refinerymainly come from its toxic wastewater storage, with alleged pollution of waterways flowing into the Great Barrier Reef already the subject of prosecution by the state regulator. | The environmental risks in a shutdown of the refinerymainly come from its toxic wastewater storage, with alleged pollution of waterways flowing into the Great Barrier Reef already the subject of prosecution by the state regulator. |
| Powell said the potential cost of rehabilitating the site ranged from a government estimate of $93m to restore it as an industrial site to a QN staff estimate of up to $600m to restore its natural state. | Powell said the potential cost of rehabilitating the site ranged from a government estimate of $93m to restore it as an industrial site to a QN staff estimate of up to $600m to restore its natural state. |
| Hutton said there was “unnecessary angst” about the laws and it was his “strong belief” they would not capture the likes of SCP or its backers. | Hutton said there was “unnecessary angst” about the laws and it was his “strong belief” they would not capture the likes of SCP or its backers. |
| “In fact, I will be talking to the government in the near future about what can be done to help the sale of Queensland Nickel to an enterprise like Sister Cities and getting those people back to work but with environmental protections built in to the whole thing,” Hutton said. | “In fact, I will be talking to the government in the near future about what can be done to help the sale of Queensland Nickel to an enterprise like Sister Cities and getting those people back to work but with environmental protections built in to the whole thing,” Hutton said. |
| “And I’m very hopeful that we’re going to get a good outcome. [The laws] are not going to pick up ordinary investors, or directors of companies who have done the right thing. | “And I’m very hopeful that we’re going to get a good outcome. [The laws] are not going to pick up ordinary investors, or directors of companies who have done the right thing. |
| “But if in fact we’ve got people who act irresponsibly, walk away from their legal commitments, then they can be chased.” | “But if in fact we’ve got people who act irresponsibly, walk away from their legal commitments, then they can be chased.” |
| Bill Potts, the president of the Queensland Law Society, said the state government had tweaked the laws at the society’s request to protect landowners and native title holders who risked being caught up in the fallout of failed projects. | Bill Potts, the president of the Queensland Law Society, said the state government had tweaked the laws at the society’s request to protect landowners and native title holders who risked being caught up in the fallout of failed projects. |
| “It would have been an injustice for these people to have been potentially responsible for the environmental cleanup of projects on their land, especially if it wasn’t of their choosing,” Potts said.“QLS is also pleased that a statutory guideline is to be developed to constrain the use of these powers and best direct them to ensuring polluters clean up their own mess.” | “It would have been an injustice for these people to have been potentially responsible for the environmental cleanup of projects on their land, especially if it wasn’t of their choosing,” Potts said.“QLS is also pleased that a statutory guideline is to be developed to constrain the use of these powers and best direct them to ensuring polluters clean up their own mess.” |