Newcastle Knights

Nathan Tinkler teeters on a cliff edge

• <cite> Phil Jacob </cite>
• <cite> The Daily Telegraph </cite>
• November 21, 2012 12:00AM

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Financial woes ... Nathan Tinkler. Source: The Daily Telegraph



NATHAN Tinkler could face the risk of personal bankruptcy, depending on liquidators' findings, after the latest chapter in his financial rodeo unfolded before the courts yesterday.

A court yesterday ordered his Mulsanne Resources be liquidated over a failed $28.4 million debt to Blackwood Corporation.
Queensland coal explorer Blackwood sued Tinkler's shelf company Mulsanne Resources after it agreed to buy a 33.85 per cent stake in it for $28.4 million - but then failed to follow through with the deal.
After two months of litigation, NSW Supreme Court senior deputy registrar Nicholas Flaskas yesterday ordered that Mulsanne Resources be wound up and Ferrier Hodgson's Robyn Duggan and John Melluish be appointed as liquidators to recover the debt.
Often accused of delaying debt repayments to the last possible minute through the courts, the coal baron has never before proceeded to the point where one of his companies has been liquidated as a result of court action.








In the past two months he has settled a dispute with Mirvac over his failure to meet a deadline on a $17 million payment - and a separate dispute with mining services company Sedgman.
If found to have traded while insolvent, Mr Tinker's personal assets could be seized and he and two other directors banned from acting as company directors.
But a spokesman for Tinkler Group said the court's ruling would not affect its stable of other companies, which include Hunter Ports, International Ports and Logistics, Hunter Sports Group and Patinack Farm.
"The liquidation of Mulsanne Resources does not affect any other part of the Tinkler Group," he said.
Mr Tinkler's Patinack Farm recently held a reduction sale of more than 200 of its horses, with head trainer John Thompson admitting the thoroughbred stable was at times unable to cover the cost of feed. Patinack also failed to pay super or workers' compensation insurance premiums.
While most in Mr Tinkler's position would borrow more money to pay off his debts, it is the value of his stake in Whitehaven coal that baffles analysts.
In the past year his main asset - the 19.4 per cent stake in Whitehaven Coal - has plummeted in value, with lenders now even potentially considering calling a margin call on the debt.
While Mr Tinkler attempted to lead a coup against the board of mining company Whitehaven Coal, in which he is the biggest shareholder, the move ended up narrowly failing to deliver the company a "first strike".
At the height of his empire in 2010, BRW magazine valued Mr Tinkler's wealth at $1.2 billion.
But the collapse in coal prices combined with his extravagant expenditure on billionaire toys has stretched his finances to the limit.