Nathan Tinkler and his family's assets may be frozen after liquidators applied for a court injunction.
Liquidators acting on behalf of creditors of the coal baron's failed company Mulsanne Resources have started the process of freezing his assets through an application for a Mareva injunction in the NSW Supreme Court.
The parties involved include its largest creditor, Blackwood Corp, which is owed $28.4 million after Mulsanne failed to make a payment for a share placement last year.
Blackwood, a coal explorer, released a statement to the stock exchange on Wednesday saying it wants the assets frozen while legal action accusing Mr Tinkler and other Mulsanne directors of insolvent trading and breach of directors' duties is determined.
According to a filing in court on Tuesday, the freezing order does not prohibit Mr Tinkler and his wife Rebecca from spending up to $2000 a week for "ordinary living expenses". The application has specified assets to be frozen.
These include the Tinklers' bank accounts, various trusts, the Tinkler family superannuation fund, shares held in Whitehaven Coal and in the Patinack horse farm.