Strife for Tinkler racing firm
THE horseracing interests of self-made mining magnate Nathan Tinkler are in deep financial crisis after having failed to meet the superannuation payments of its workers since November.
THE horseracing interests of self-made mining magnate Nathan Tinkler are in deep financial crisis after having failed to meet the superannuation payments of its workers since November.Internal documents from Mr Tinkler's racing company, Patinack Farm, show staff are on the point of "mutiny" after a series of failed promises to have the unpaid superannuation made up.It is also understood that, following complaints from employees, the Australian Taxation Office has begun an investigation.In one internal email seen by Fairfax, staff were told the delay was due to "cash flow management", while in another correspondence a member of the accounts team admits: "It's very frustrating for everyone I haven't got mine either!"The staff member said it needed to be resolved soon "or there's going to be a mutiny".The failure of Patinack to meet its wage responsibilities comes as Mr Tinkler, whom BRW estimated to be worth $915 million, was last week unable to raise $28.4 million to fulfil an obligation to buy a 34 per cent stake in the listed coal company Blackwood Corp.On Friday, Fairfax revealed Mr Tinkler unsuccessfully tried to sell his racing and breeding interests to a Qatari sheikh for $200 million, about $100 million less than he has pumped into the sport in the past four years.A Patinack worker, who asked not to be named, said staff were deeply upset at their treatment by Mr Tinkler."This guy's supposed to be a billionaire, so why can't he pay people what they're due? There's a lot of anger and frustration among the staff."He added: "There's a sense that the whole Tinkler house of cards could collapse. People are definitely worried we won't ever see this money."Having failed to offload the whole racing operation which is costing him in the region of $500,000 a week to Sheikh Fahad al-Thani, Mr Tinkler will sell 350 horses in October through the Magic Millions auction company owned by retailing billionaire Gerry Harvey.Racing sources believe Mr Harvey has given Mr Tinkler a cash sum in advance of the sale of about $20 million in order to help his cash flow.On Saturday, Mr Tinkler had disappointment on the racetrack when his best colt, All Too Hard, a half brother to champion Black Caviar, finished third to Snitzerland in the group 3 San Domenico Stakes at Rosehill when a heavily backed odds-on favourite. If the colt had a poor campaign, it would likely affect its estimated $10 million value as a potential stallion.Mr Tinkler has a reputation as a master deal-maker after building his fortune on the back of a $500,000 loan to buy a coalmine in which others saw no potential.He is attempting to privatise the mining company Whitehaven. He owns 21 per cent of Whitehaven's shares. To succeed in that $5.3 billion deal, he needs to raise at least $1 billion from partners.But Mr Tinkler's Whitehaven stock has slumped recently. On Friday his shares were worth $778 million, down from $1.2 billion in April.Under federal law, employers are supposed to make super contributions at least every three months. Wage slips for employees still state that contributions are being made, though no money is arriving in super funds.Mr Tinkler's spokesman declined to comment last night.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free
Join the Conversation...
There are comments posted so far.