Clive Palmer is an Australian Billionaire businessman and politician. He is the founder and chairman of the Mineralogy company and has been involved in several other business ventures in Australia. In 2013, Palmer founded the United Australia Party and ran for office in the federal election in which he won a federal seat in Queensland.
Now that you have a tiny bit of background on Clive… He has just finessed General Electric, one of the biggest companies in the world, out of $46.6 Million.
Queensland Nickel is a company owned by Clive Palmer. The company was based in Townsville, Queensland, and was one of Australia’s largest nickel producers. However, in 2016, the company went into voluntary administration and later liquidation, with hundreds of employees losing their jobs. The collapse of the company led to a number of legal and financial disputes, one being a Private jet that was funded by GE’s industrial credit division.
The twin-engined aircraft, with room for up to 14 passengers and a maximum range of 12,000 kilometers, was painted with Palmer United Party logos and used to support Clive Palmer’s successful 2013 federal election run for the Sunshine Coast seat of Fairfax.
After QNI went into liquidation, GE sent a letter to recoup the funds that they had given Clive for his Palmer Aviation venture which was a subsidiary of QNI. However, The jet was sold for $US5.6 million in 2018 after QNI went into liquidation which triggered a clause in the contract that stated “best price obtainable” on the jet’s resale.
Luckily for GE the Supreme court didn’t buy this and stated that Clive must pay the funds that are owed.
Since this has been a long-standing feud, GE has gone ahead and sold the rights to the funds to be recouped by Vannin Capital, a multinational corporate litigation financing company, which took over GE’s rights to the loan in 2018. Vannin took legal action to contest the debt in 2019 just before the pandemic.
Vannin Capital, a multinational corporate litigation financing company, took over GE’s rights to the loan in 2018 and QNI took legal action to contest the debt in 2019.
In a slick business move, QNI brought a motion to stay the proceedings, arguing that it was being exposed to the risk of Vannin becoming insolvent and being unable to repay the $US30 million-plus if it lost a future appeal.
Justice John Bond ruled on Friday that there was “no demonstrated reason” to grant QNI’s appeal against the payment terms.
Vannin has now made their company temporarily closed and has had to sell the company.
Meaning Clive was right all along and in the end, will be finessing $46.6 Million.