BGP: Clive Palmer’s Mineralogy loses court bid to delay paying $22m debt

 

 

 

BGP: Clive Palmer’s Mineralogy loses court bid to delay paying $22m debt

Clive Palmer’s flagship company has lost a court bid to delay paying a debt of more than $22 million owed to a Singapore-based exploration company.

Last month a judge ordered Mineralogy to pay US$17.6 million owed to BGP Geoexplorer for survey work in the Gulf of Papua for Palmer Petroleum, which is now in liquidation.

Mineralogy had claimed it was not obliged to pay, but lost its Supreme Court case.

It lodged an appeal of the decision and an application to stay the payment order.

But the Court of Appeal yesterday dismissed Mineralogy’s stay application, meaning the company now has to pay BGP Geoexplorer the full amount.

The court accepted BGP’s undertaking that the money would be held in a trust account, pending the outcome of Mineralogy’s appeal.

Mineralogy had asked for a stay until the outcome of the appeal, offering an alternative to making payment.

It had proposed Clive Palmer and Palmer Leisure would offer registered first mortgages on properties valued at $25.89 million, as security against the debt.

They included Clive Palmer’s Palmer Sea Reef Golf Course at Port Douglas, said to be valued at $14.75 million and an estimated $11.14 million worth of properties owned by Palmer Leisure.

 

But the appeal court said if Mineralogy’s appeal was unsuccessful BGP could find that forced sales of the land may take too long and not make enough money to cover the debt with interest.

Ashley Hill, head of litigation for GRT Lawyers, which represented BGP Geoexplorer, said the latest decision meant the company was one step closer to recovering the money.

Mr Hill said it also meant enforcement steps, which were already underway, could proceed.

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