Liquidation bid frozen as $16.4m knocked off Tinkler's debt
Blackwood told the market on Tuesday that it would drop liquidation efforts against Mr Tinkler and other directors of his private company Mulsanne Resources if a payment of $12 million was made by June 30.
Blackwood said the payment could be made by any of the companies linked to Mr Tinkler, and any asset sales across Mr Tinkler's empire must be used to resolve the debts.
Liquidators had started legal action against Mr Tinkler and other directors of Mulsanne Resources for insolvent trading, but Tuesday's deal freezes that action pending payment.
Failure to pay by June 30 will see the legal action resumed on July 1.
Mr Tinkler's companies have missed payment deadlines in the past, and Blackwood said it would continue to monitor the recoverability of money closely until they were paid.
A spokesman for Mr Tinkler released: "The Tinkler Group is pleased to have agreed to settle this matter to each side's satisfaction. We look forward to fulfilling the agreement over the next month."
Mr Tinkler was once named as Australia's youngest billionaire at the age of 35 until his empire began to fade under heavy debts and weakening coal markets. Mr Tinkler's investment vehicle Aston Resources remains the biggest shareholder in ASX-listed Whitehaven Coal, with a 21 per cent stake worth about $480 million.
The value of that stake has more than halved over the past 12 months, on the back of sliding coal prices and uncertainty about the future of Mr Tinkler's stake.
Frequently Asked Questions about this Article…
Blackwood agreed to freeze liquidation action against Nathan Tinkler and other directors of his private company Mulsanne Resources if a payment of $12 million is made by June 30. The payment would resolve part of about $28.4 million of debts that stem from a failed share placement.
Liquidators had launched legal action against Tinkler and other Mulsanne Resources directors for insolvent trading related to debts originating from a failed share placement. Blackwood moved to pursue liquidation to recover money owed.
Blackwood said the $12 million payment can be made by any of the companies linked to Nathan Tinkler. It also required that any asset sales across Tinkler’s business empire must be used to help resolve the debts.
If the payment is not received by June 30, the frozen legal action will be resumed on July 1 and liquidators will continue pursuing recovery through the courts.
The $12 million settlement is less than half of the roughly $28.4 million of debts arising from the failed share placement, meaning Blackwood has agreed to accept a substantially reduced repayment to halt liquidation efforts.
A spokesman for the Tinkler Group said: "The Tinkler Group is pleased to have agreed to settle this matter to each side's satisfaction. We look forward to fulfilling the agreement over the next month."
Nathan Tinkler was once named Australia’s youngest billionaire, but his empire weakened under heavy debts and falling coal markets. His investment vehicle Aston Resources remains the biggest shareholder in Whitehaven Coal with a 21% stake valued at about $480 million, though that stake’s value has more than halved over the past 12 months amid sliding coal prices and uncertainty.
Investors should note that Blackwood has said it will closely monitor the recoverability of the money until payment is made, and that Tinkler-linked companies have missed payment deadlines in the past. If assets across Tinkler’s businesses are sold to meet the settlement, that could influence the timing and size of recoveries—but the legal action will simply resume if the June 30 payment is not made.
Call 1300 880 160
Start a chat
Schedule a call
