Banks win High Court hearing on Bell Group

THE banks involved in Australia's most expensive and longest-running court case have won the right to take their battle to the High Court.

The consortium of 20 banks including Westpac and Lloyd's TSB Bank had previously lost an appeal in Western Australia's Supreme Court against a 2008 ruling that ordered them to pay about $1.58 billion to the liquidators of Bell Group, once controlled by fallen tycoon Alan Bond.

They had agreed in 1990 to extend Bell Group's loans to allow it to restructure and remain afloat, and in exchange were given guarantees and security over Bell Group's publishing assets, shares in Bell Resources and other minor assets.

Bell Group was at the time on the brink of insolvency, and the banks were found by Justice Neville Owen to be liable as knowing recipients of the company's trust property.

But in Melbourne today, the full bench of the High Court granted an application by the banks for special leave to appeal.

The banks' counsel had argued the existing judgment would likely make directors and financiers more risk averse in future, and that rather than trying to put in place rescue plans to support businesses, they would find it safer to move earlier to insolvency.

A directions hearing will take place before the appeal is heard in Canberra at a later date.

View the original article here

Tinkler back in court

Nathan Tinkler has been accused in a Supreme Court hearing in Brisbane of diverting coal royalties from a Middlemount mining company, Oceltip, in which Mr Tinkler is a director and is linked to a 75 per cent interest. Picture: Liam Driver Source: The Daily Telegraph

EMBATTLED coal baron Nathan Tinkler has told a court the debts of his Tinkler Group are about $500 million.

The detail emerged as he appeared before the NSW Supreme Court for a second day of questioning about his finances and the collapse of his mining company Mulsanne Resources.

Under questioning from counsel for Mulsanne's liquidators, Robert Newlinds, SC, Mr Tinkler was asked about the value of shares in his main asset, Whitehaven Coal, and the total debts of Tinkler Group.

While he did not give an answer about the value of his Whitehaven shares, Mr Tinkler said the total debts of Tinkler Group were "around $500 million".

Mulsanne was put into liquidation late last year after failing to pay for a $28.4 million stake in junior coal miner Blackwood Corporation. Mr Tinkler told the court today he did not approach "normal banks" to raise funds for the looming $28.4 million debt because they did not understand his business model.

"Its just out of the question for me to deal with normal banks," he said. "They don't understand how I create wealth."

Mr Tinkler previously told the court he had three properties worth nearly $20 million in total which could have been used for security in the Blackwood share purchase.

However Mr Tinkler told Mr Newlinds that he was unsure if valuations on the houses were ever done.

The court also heard Mr Tinkler received an extension on the deadline to settle the Blackwood debt and that he had been in discussions with Noble Group director Will Randall about the sale of a coal royalty to Noble to help provide funds.

Mr Tinkler said he travelled to New York after the initial deadline for the debt had passed for talks with financiers because he was "starting to lose faith" in Noble buying his royalty. The court has heard that the sale of the multi-million dollar royalty from the Middlemount mine in Queensland was central to Mr Tinkler's plan to fund the Blackwood deal.

However he has denied falling out with a former business partner, Matthew Higgins, who is suing him over the coal royalty.

Mr Higgins sued Mr Tinkler in December 2012 over a dispute about the distribution of the royalty. But Mr Tinkler today played down any suggestion of a rift with Mr Higgins by revealing the pair had breakfast together that morning.

He said despite not having agreement from Noble to buy the royalty, or agreement from Mr Higgins to sell his share to Noble, he was "absolutely" confident the deal could proceed with just three days to the deadline.

"We've pulled deals together in that sort of timeline previously so I was pretty relaxed," Mr Tinkler said.

The hearing continues.

View the original article here

Tinkler in court over failed company

Nathan Tinkler at the Supreme Court today. Picture: Attila Szilvasi Source: The Daily Telegraph

EMBATTLED coal baron Nathan Tinkler has arrived at the Supreme Court to face questioning over his role of his failed company Mulsanne Resources.

It is Mr Tinkler's first public appearance in weeks, with his whereabouts having become the subject of great speculation.

Unless Mr Tinkler comes up with an 11th hour payment of a $28.4 million debt owing to a small stock market listed coal company he will face a grilling in a liquidators examination today.

Mr Tinkler has reportedly approached four financiers asking to borrow the cash to pay the debt, but has been turned down.

He is reported to be in financial dire straits - having allegedly borrowed $700 million secured against his stake in coal company Whitehaven - which is now estimated to be worth just $500 million.

Tinkler arrived at court shortly before 10am and went next door to his barrister's chambers - fuelling speculation he is trying to strike a deal to avoid the public probe.

Mr Tinkler, 37, has lost a considerable amount of weight since he was last in public several months ago.

He is required to turn up to court today.

View the original article here