Doubts have been raised about the future of the Queensland Nickel collapse trial with Clive Palmer having settled a majority of liquidator claims.

August 8, 2019

Clive Palmer’s defence team has raised doubts about the future of the trial stemming from the collapse of Queensland Nickel amid a growing dispute over the remaining claims against the billionaire businessman.

The self-represented mining magnate wasn’t in court on Thursday for the restart of the multimillion-dollar lawsuit brought by two sets of liquidators after the Townsville refinery’s 2016 collapse.

It was left up to lead lawyer for Mr Palmer’s companies Dr Chris Ward SC to advise the Brisbane Supreme Court the defence team “seriously disputed” the remaining liquidator’s amended claims.

He told Justice Debra Mullins that with Mr Palmer agreeing to settle the majority of the claims on Monday, a question mark hung over the four claims and the future of the trial.

It’s understood the liquidator’s amended claims include allegations Mr Palmer’s company, Mineralogy, received loans worth $115 million from the cash-strapped refinery but never repaid them.

It’s also alleged Mr Palmer acted as a shadow director of QN, which allegedly traded insolvently and signed a $235 million deal paying two of the former Federal MP’s Galilee Basin mining projects ahead of workers if the refinery went into administration.

“We will be … making an application to your honour for directions in relation to the future conduct of the trial, and in particular, ventilating the prospect of the trial no longer proceeding,” he said.

Dr Ward said the remaining claims after Monday’s settlement is applied would be “essentially so the (liquidator) and their funder can pay themselves”.

“This a substantial issue which needs proper resolution,” he said.

“It should be determined properly what is the next step in the proceedings after the magnitude of what occurred last week and earlier this week.”

The court also heard an application will be made to remove Mr Palmer’s nephew, Clive Mensink, as a defendant in the trial following the recent settlement.

A lawyer for the liquidators, Graham Gibson, rejected the defence assertions about the claims and foreshadowed a coming argument between the parties.

Justice Mullins adjourned the trial until August 19 when the party’s applications about the liquidator’s remaining claims and the future of the trial will be heard.