Embattled coal baron Nathan Tinkler has agreed to pay $12 million to settle an outstanding $28.4 million share placement debt with miner Blackwood Corporation.
Blackwood and Tinkler have entered a Deed of Settlement and Release under which Tinkler’s companies will pay $12 million to Blackwood to terminate a Share Placement Agreement, clearing Tinkler’s debt and leaving him with no shares in Blackwood.
Blackwood has suspended legal proceedings against Mr Tinkler until June 30 to allow the money to be paid.
If the money is not paid by the deadline, the legal proceedings, which include a freezing order application, will resume.
“The Tinkler Group is pleased to have agreed to settle this matter to each side’s satisfaction,” The Tinkler Group said in a statement.
“We look forward to fulfilling the agreement over the next month.”
Blackwood said some of Tinkler’s companies and his family trust had provided irrevocable undertakings that, if “certain assets” were sold and generated $12 million in net profits, those sale proceeds would be paid to Blackwood.
Blackwood forced Tinkler’s Mulsanne Resources into liquidation in 2012 after Mulsanne failed to pay $28.4 million for a one-third stake in Blackwood.
Tinkler faced a liquidators’ examination into the state of his assets in the NSW Supreme court in March.
In May, the liquidators applied to freeze Tinkler’s assets and those of his wife, as trustee of the Tinkler Family Trust, while legal action against Tinkler and Mulsanne’s directors for alleged insolvent trading proceeds.
Those actions are now on hold pending the payment of the proposed settlement.
A reduction sale of Tinkler’s Patinack Farm racing operation has so far realised $10 million from the sale of weanlings and broodmares with the Magic Millions to begin auctioning racing stock on Friday.