Clive Palmer’s failed Queensland Nickel refinery was insolvent in the days before administrators were called in, a judge has found.
But Justice Debra Mullins dismissed the liquidators’ claim against Mr Palmer’s flagship company Mineralogy that it was indebted to Queensland Nickel.
The judgment follows a mammoth Supreme Court civil trial into the company’s 2016 collapse, which left 800 people out of work.
The insolvency ruling could now attract the attention of the Australian Securities and Investments Commission.
Mr Palmer settled the majority of the $200 million lawsuit in 2019 – including agreeing to repay $66 million in taxpayer funds forked out for sacked worker entitlements.
But general purpose liquidators continued to pursue his companies in court for the remaining claims.
They wanted to claw back about $120 million from Mineralogy.