Judge puts freeze on Palmer assets
CLIVE Palmer has been dealt a significant blow, with a judge freezing more than half a billion dollars of his personal and commercial assets.
Liquidators fighting to recoup more than $ 300 million still owed to creditors from the collapse of Queensland Nickel told the Supreme Court there was a risk Mr Palmer would “dissipate assets” and “continue to forgive loans to himself and others” before the mammoth lawsuit could be resolved.
Justice John Bond yesterday granted the application which will see more than $ 204 million of Mr Palmer’s personal assets, and more than $ 350 million of the mining magnate’s various business assets, frozen. It includes $ 199 million of QNI Resources, $ 49 million of QNI Metals and $ 14 million of Mineralogy.
While Mr Palmer and his lawyers have strenuously denied the former MP would not be able to comply with any future cost orders, Justice Bond SETBACK: Clive Palmer has had personal assets frozen in the Supreme Court. said the freezing order was “in the interest of justice”.
“The ( liquidators) have a good arguable case that they will recover significant judgments against Mr Palmer and his various companies,” Justice Bond said. “There are particular aspects of Mr Palmer’s previous conduct and decision making which would lead a prudent, sensible commercial person to infer that there is a real risk that he would take, or cause to be taken, steps outside court processes to attempt to frustrate or inhibit the prospects of enforcement or execution of any significant judgment against him or any of his companies.”
The complex series of orders placed on Mr Palmer and his businesses will freeze the assets up to varying amounts, $ 204 million in Palmer’s personal case, but as long as the requisite value of assets is maintained, they can be dealt with in the proper course of business, including paying legitimate business expenses.
Mr Palmer’s lawyers lost a last- ditch bid to have the freez- ing application stayed pending the outcome of an appeal.
It came just hours after he reclaimed his title as Queensland’s wealthiest man. A national rich list released yesterday puts the controversial businessman’s estimated fortune at $ 2.84 billion.
Justice Bond said the freezing order should not have a significant impact on Mr Palmer “if he has as much money as he claims to”.
Mr Palmer, who did not appear in court, last night slammed the decision as an “ongoing witch hunt” and “a storm in a tea cup”.
During a radio interview he called for the Commission of Inquiry into financial services to be extended to include liquidators who, he said, were “a law unto themselves and need to be brought to account”.