Tinkler beats deadline to settle coal debt of $12m
Last week, the troubled businessman lost control of his 22 per cent shareholding in Whitehaven Coal to his financiers, sparking renewed concern over his financial position.
As part of that settlement, sources close to Mr Tinkler said he received funds that would enable him to pay the outstanding $12 million, in full, by the end-of-June deadline.
To resolve earlier litigation with Blackwood Resources, Mr Tinkler agreed to pay $12 million following a dispute between the two parties which arose out of a failed share purchase agreement. Mr Tinkler had earlier agreed to pay $28.4 million to Blackwood, a coal explorer, but he failed to deliver the funds.
During the litigation, Mr Tinkler told the NSW Supreme Court that his debts were about $600 million.
Blackwood is seeking to develop coal exploration properties in Queensland.
Last week, Blackwood borrowed another $1 million from Noble Group, ahead of the receipt of funds from Mr Tinkler. Following receipt of the funds on Thursday from Mr Tinkler, Blackwood said it would repay money owed to Noble.
"We can now refocus activities at the company's flagship asset at South Pentland and use the balance of the settlement monies to further define and develop the assets of the company," Blackwood chief executive Todd Harrington said.
Frequently Asked Questions about this Article…
Nathan Tinkler paid $12 million — a day early — to settle outstanding litigation with Blackwood Resources that arose from a failed share purchase agreement.
The dispute came from a failed share purchase agreement; Tinkler had earlier agreed to pay $28.4 million to Blackwood but failed to deliver the funds, which led to litigation and the eventual $12 million settlement.
Sources close to Tinkler said he received funds as part of a separate settlement, which enabled him to pay the outstanding $12 million in full ahead of the end-of-June deadline.
Last week Tinkler lost control of his 22% shareholding in Whitehaven Coal to his financiers, sparking renewed concern about his overall financial position — a development investors monitoring companies linked to him should note.
During the litigation, Tinkler told the NSW Supreme Court that his debts were about $600 million.
Blackwood said it will refocus activities at its flagship South Pentland asset and use the balance of the settlement funds to further define and develop the company’s assets.
Yes — Blackwood borrowed $1 million from Noble Group ahead of receiving funds from Tinkler; after receiving the settlement payment, Blackwood said it would repay the money owed to Noble.
For investors, the $12 million settlement removes a specific litigation overhang for Blackwood and allows the company to progress South Pentland development, but Tinkler’s loss of his Whitehaven stake and his reported ~$600 million of debts are warning signs about his personal financial stress that may affect related investments.
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