Park, in the matter of Queensland Nickel Pty Ltd (in liq)

The case involves Queensland Nickel Pty Ltd (QNI) in liquidation, with the liquidators seeking to pay certain creditors from trust assets. The court was asked to decide whether the liquidators could pay a specific creditor, Prony, from these trust assets. Prony had previously agreed to a reduced amount of its debt, and the liquidators sought to pay this reduced amount. The Palmer Parties, who had previously objected to the liquidators’ actions, now wanted the court to delay the decision until a full hearing could be held to interpret the settlement deed between Prony and QNI. The court found that the settlement deed did not create a new debt but instead quantified the existing debt for the purpose of the liquidation. Therefore, the liquidators were justified in paying the agreed amount to Prony from the trust assets. The court granted the liquidators’ request and set dates for further submissions and a hearing on related issues. The costs for Prony and the other parties were reserved for later determination.