Further proceedings adding to the lengthy litigation concerning the winding up of Queensland Nickel Pty Ltd (QNI). The joint and several liquidators of QNI sought directions under s 90-15 of Schedule 2 of the Corporations Act (Insolvency Practice Schedule), and further or alternatively, s 96 of the Trusts Act 1973 (Qld) as to how they should deal with the judgment sum received from Mineralogy in satisfaction of the judgment obtained by QNI against Mineralogy in the Queensland Court of Appeal. The Federal Court directed, amongst other things, that the liquidators were justified in (a) refusing to pay the judgment sum to a new trustee (Queensland Nickel Sales) until such time as it was established that QNI held a surplus of assets over liabilities; and (b) paying from the trust assets liabilities that included the liquidator’s remuneration and the amounts owed to Vannin, the litigation funder who had funded the proceedings brought by QNI against Mineralogy.
Michael Hodge KC (leading F Lubett and P Kucharski) appeared for the fifth interested person, instructed by Corrs Chambers Westgarth.
The judgment is published here.