Palmer warrant threat
debt to one of his other companies, China First.
When the former billionaire then attempted to call in sick to the court on Monday night just 12 hours before his appearance, Federal Court documents show his lawyers were told in no uncertain terms a warrant would be sought for his arrest.
“It is a matter for Mr Palmer to make the required application to demonstrate he has a reasonable excuse not to attend tomorrow,” a lawyer for the government-appointed liquidators wrote in an email.
“If an application is not filed and if Mr Palmer does not attend tomorrow as ordered by the Federal Court we will seek an order for his arrest.”
Mr Palmer, who claims painkillers for pancreatitis are affecting his memory, eventually turned up on Wednesday toting a vomit bag, breathing device and pillow to the public examination into QN’s collapse with $300 million in debts and 800 job losses. He answered questions about his nephew and former QN director Clive Mensink, but liquidators want to grill him about his appointment on May 4 of trusted ally Domenic Martino as ‘controller’ of China First to recoup a $135 million debt.
It arises from a deal Mr Mensink struck three days before QN went into voluntary administration to buy $135 million worth of shares in one of Mr Palmer’s coal projects – and if it couldn’t be paid, China First could go after QN’s assets.
Mr Martino started chasing the liquidators for the debt last week and also tried to discontinue a $100 million court proceeding against Mineralogy.
Liquidators have disputed the validity of the China First deal and whether Mr Martino can be appointed to such a position without a court order.
Mr Palmer is scheduled to appear in court again today and also on Tuesday.