BANKRUPT and banned former billionaire Nathan Tinkler had two words to say on Wednesday after Australia’s corporate regulator acted on his “multiple serious failures” as a company director.
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“F… off,” Tinkler said during a very brief phone call with the Newcastle Herald before hanging up.
The Australian Securities and Investments Commission (ASIC) disqualified Tinkler from managing companies for three years and nine months, after liquidators were appointed to 11 of his companies and he was declared a bankrupt in March, 2016 owing creditors more than $540 million.
The companies included the Newcastle Jets and his thoroughbred racing empire based at Patinack Farm at Sandy Hollow.
ASIC also disqualified his sister Donna Dennis for three years, after liquidators were appointed to nine companies she managed, including Newcastle Jets Football Operations.
Also disqualified was Tinkler’s right hand man Troy Palmer, who was given a three year nine month disqualification after liquidators were appointed to nine companies he managed, including Supercar International Holdings and Patinack Farm Administration.
ASIC moved after Tinkler company liquidators filed reports that revealed “multiple serious failures” in the Tinkler trio’s duties as company directors.
ASIC “was concerned Mr Tinkler, Ms Dennis and Mr Palmer had failed to prevent the companies from trading while insolvent, failed to ensure the companies paid their taxes, failed to discharge their duties as a director and allowed one of the companies to deliberately operate at a loss”.
ASIC did not identify that company.
“The disqualifications imposed on these directors should highlight the consequences that can follow when companies are poorly managed,” said ASIC commissioner John Price.
“ASIC will seek to hold company directors accountable if they systemically fail to discharge their obligations when managing companies.”
Upper Hunter Shire Councillor Kiwa Fisher declined to comment on the length of the disqualification.
“All I know is a lot of people got burnt, locally and beyond,” Cr Fisher said.
The disqualification came after liquidators have repeatedly challenged Tinkler in court, arguing in January that he was a “flight risk” when he applied to travel to New York for a job interview and to visit his family in Hawaii, and that he had not given a full account of his finances.
The disqualification comes only days before the last big project Tinkler was associated with before his fall and bankruptcy - revival of the mothballed Dartbrook mine near Aberdeen – is expected to hit a milestone.
In a note to the stock exchange Australian Pacific Coal - headed by Tinkler until February, 2016 – said it expected to finalise the purchase of Dartbrook from mining giant Anglo American on May 29.
On May 8 Australian Pacific Coal told the ASX that all conditions for the share purchase agreement “have now been satisfied or waived”.
The company continued to describe Dartbrook as a tier 1 asset while advising the Australian Stock Exchange that Australian Pacific Coal “has decided not to proceed with the identified underground mine plan for Dartbrook at this time” based on underground coal reserve data.
“However, a final decision on underground mining at Dartbrook is yet to be made by the company,” Australian Pacific Coal told the ASX.
The company did not respond to Herald questions about whether it would bring forward plans to operate Dartbrook as an open cut coal mine. A Dartbrook community consultative committee meeting is scheduled for Thursday morning.
Cr Fisher, who is Upper Hunter Shire Council’s representative on the committee, said he doubted whether any coal would be mined from Dartbrook.
He rejected suggestions of even a scaled-back open cut mine operation.
“A little open cut will meet with very large opposition,” he said.
Australian Pacific Coal is backed by Trepang Services, which is owned by pearling baron Nick Paspaley and property developer John Robinson.
