Lawyers for Clive Palmer's nephew, businessman Clive Mensink, are pushing to have his 2017 arrest warrants withdrawn.
Mr Mensink, a former Queensland Nickel director, has remained overseas since 2016, despite the Federal Court issuing two arrest warrants when he failed to show up for public examinations into the company's collapse.
During a Federal Court hearing in Brisbane today, Mr Mensink's barrister Chris Wilson said they were applying to have the warrants set aside.
But Federal Court Justice John Reeves said that was "presumptuous" and it could not be considered until the issue of Mr Mensink's potential contempt of court prosecution — the basis of one of the warrants — was dealt with.
"The fundamental problem is he is in contempt of court — the very court [from which he intends to seek] relief," Justice Reeves said.
Mr Wilson said his client intended to plead not guilty to the potential charge.
Justice Reeves replied: "[There is] an indication that matter should be brought forward by having your client formally charged and have that dealt with."
Mr Wilson said his client was "unable to leave his present country because of what's going on".
Mr Mensink was the sole registered director of Queensland Nickel before it collapsed in 2016, leaving more than 800 people out of work.
Liquidators have been unable to question him over the company's demise as he has been overseas since June 2016.
When Mr Mensink sought to appeal the arrest warrants in 2017, the court ordered him to pay a $70,000 security due to a risk he would not comply with any costs awarded against him.
Justice Reeves said Queensland Nickel's general purpose liquidators needed to decide whether they intended to prosecute the contempt proceeding and, if not, he would consider asking the court registrar to pursue it.
The case was adjourned to August 5 to allow the parties time to decide their positions.
