A $1 NATHAN Tinkler company with no bank accounts has been ordered to pay $250,000 to advance a Supreme Court case as the fallen billionaire attempts to stake a claim on more than 26 million Whitehaven Coal shares.
The move, which could be worth more than $150 million, is linked to the $5.1 billion merger deal from 2012 between Tinkler's Aston Resources and Whitehaven, which included the acquisition of Boardwalk Resources.
The one-time mining magnate, and former Newcastle Knights and Jets owner, who declared bankruptcy just years after being named Australia's youngest billionaire in 2012, claims he missed out on a big pay day when Whitehaven Coal did not develop four coal projects that would have seen him and his family members eligible for the milestone, or restricted shares.
Tinkler is attempting to get the shares that are held by Boardwalk Resources Investments, as trustee for the Boardwalk Resources Trust, transferred to his $1 company Cayenne Coal.
The move comes after Cayenne was appointed trustee of the Boardwalk Resources Trust.
If successful, the court heard the shares will be used by another company linked to Tinkler, Les & Zelda Investments, to secure legal representation to sue Whitehaven Coal for damages and oppressive conduct for allegedly breaching its contractual obligations to develop the mining projects that would have triggered the release of the restrictions on the shares.
Whitehaven shares were selling for about $6 on Thursday, but the miner has issued a directive to the company that manages its stocks not to register the transfer of the shares Tinkler is seeking.
To make matters more difficult, Whitehaven successfully asked the Supreme Court to order Cayenne to find $250,000 to lodge with the court as security to pay for the Whitehaven's costs in case Tinkler loses the case.
Justice Michael Ball said it was clear Whitehaven objected to the transfer of shares and planned to defend the matter.
"Cayenne has paid up capital of $1. It has no bank accounts," Justice Ball said.
"It appears that it has not filed any tax returns. Nor has it prepared any financial statements. It is to be inferred from these facts that it is a dormant company with no substantial assets."
Tinkler, whose bankruptcy was annulled in 2018, was also being chased earlier this year in the Queensland courts by his ex-lawyer for $175,000 in allegedly unpaid fees.
To add further financial pressure, Les & Zelda Investments was ordered by the Supreme Court last month to find $850,000 to lodge with the court as security to pay for Whitehaven's costs in case it loses the case, or the matter will be stayed.
The case between Whitehaven and Cayenne is set down for a two-day hearing in August, but Justice Ball said that case would also be stayed unless Tinkler found $250,000.
"The fact that Cayenne has no ability to pay costs together with the fact that no-one standing to benefit from Cayenne's success has agreed to pay Whitehaven's costs if it is successful provides a strong reason for ordering security," Justice Ball said.
