Face of Nation : Clive Palmer’s failed Queensland Nickel refinery traded insolvently before administrators were called in to help save the cash-strapped Townsville operation, a court has heard.
Insolvency expert Peter Gothard on Monday told the Brisbane Supreme Court it was likely the now-collapsed refinery had been insolvent as early as October 9, 2015, and remained so until the billionaire businessman and his team called in administrators on January 13, 2016.
Justice Debra Mullins said proving if QN was insolvent on January 13 was now the main purpose of the long-running trial, which has seen Mr Palmer settle more than half of the $200 million worth of claims against him by the refinery’s liquidators.
“I do hold that opinion Your Honour,” Mr Gothard replied. He said despite extensive but ultimately unsuccessful efforts to raise funds to inject into the ailing refinery, QN’s working capital continued to deteriorate and liquidity was in 2015.
The company also didn’t have any substantial property or plant and equipment or surplus assets that could have been sold and used to pay creditors.
“QN’s related parties and shareholders hadn’t contributed sufficient funds to support the company and maintain its solvency,” he said. It also failed to win over major creditors and gain delayed payment plans for its debts, he said.
