Nathan Tinkler’s plan to escape bankruptcy

Those creditors include the tax office, which is chasing Mr Tinkler for $106,015,709, but which will have to settle for $127,218 if the offer of just 0.12 cents in the dollar gets the nod.

Despite one of the most spectacular and controversial flameouts in Australian business history, the man they call the Boganaire has returned to the mining fold with a plan to revive the closed Dartbrook coalmine.

But the descent into bankruptcy forced him off the board of the company that is buying the mine, Australian Pacific Coal. He may also face an unwelcome public examination of the state of his finances if the bankruptcy continues.

In a report to creditors dated Tuesday, December 13, his bankruptcy trustee, John Melluish of Ferrier Hodgson, says Mr Tinkler would put up $1 million if his creditors accept the offer at next Wednesday’s meeting.

Mr Melluish lists expenses, including his remuneration, totalling $311,567, meaning there would be $693,663 in the kitty for creditors.

The report lists 14 creditors owed $553,798,022 although Mr Melluish says he has not formally checked for proof of debt “due to the absence of funds to pay a dividend”.

The biggest debt is described as owed to AET Lmited/Credit Suisse AG, which is claiming $424,368,499.

The tax office is the next biggest creditor, at $106 million in “director’s penalities and income taxes”.

The next biggest creditor is his former wife, Rebecca Tinkler, who is claiming $11,012,527 in “child support and other payments due as a result of divorce settlement”.

Smaller creditors include Damien Allen, who is claiming $24,423 in barrister’s fees, and Port Macquarie-Hastings Council, which is chasing $2742 in council rates.

In a section of his bankruptcy report headed “opinion”, Mr Melluish says “at this stage, the bankrupt has failed to co-operate in the provision of reasonable financial records”, including bank and credit card statements relating to his personal living expenses.

Other evidence in relation to the “sale or transfer or assets including . . . racing vehicles” was also “not satisfactory”. 

Mr Melluish said he would get a clear picture of Mr Tinkler’s finances from a formal examination, but he was unable to say how much extra money he would be likely to claw back.

“Accordingly, I am of the opinion that creditors would not benefit from accepting [Mr Tinkler’s] proposal at this stage,” Mr Melluish said.

For Mr Tinkler’s bid to succeed, it has to be accepted by a numerical majority of creditors, and by 75 per cent of the value of his debts.

Mr Melluish said Mr Tinkler had not paid any of the $60,407.30 he was supposed to pay towards the first year of his bankruptcy. He said “steps are being taken to recover his contribution arrears.”