THE bad news gets worse for Nathan Tinkler’s creditors after it was revealed the former billionaire owes $41million to his New York banker Jefferies Group.
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The list of losers continues to grow as Mr Tinkler’s business empire unwinds with a fresh bunch of unsecured creditors, owed $2.7million, likely to receive nothing.
The creditors are owed money from Mr Tinkler’s Ocean Street Holdings that was placed in liquidation last month.
Directors’ reports by Mr Tinkler and his sister Donna Dennis to the Australian Securities and Investments Commission on Monday reveal debts of $43.7million, against $27,544 cash in the bank.
Unsecured creditors include Monteath Strata Management owed $58,215, Four Walls Commercial owed $31,119, Newcastle City Council owed $295,045 and the tax office owed $838,026.
The report was lodged on the same day as the Supreme Court in South Australia made an order for Mr Tinkler’s arrest over the liquidation of his Patinack Farm thoroughbred racing and breeding empire.
Ocean Street Holdings liquidator Simon Thorn, of PKF, said on Wednesday that a full investigation of the company’s finances had not been completed.
Mr Thorn said he believed the debt to Jefferies Group was owed across a number of Tinkler companies.
In March, Jefferies Group lodged no fewer than seven wind-up applications aimed at liquidating Patinack Farm and its associated companies.
‘‘As it stands today it looks like there is nothing in it for unsecured creditors,’’ Mr Thorn said.
‘‘There will also be a huge shortfall to the lender.’’
Mr Tinkler’s report lists two properties owned by the company, including a shed at Steel River industrial estate, where it is believed the former tycoon kept his high-priced toys, and a block of land at Mayfield West that was at the centre of a Supreme Court dispute in 2012 with developer Mirvac.
Ocean Street Holdings was contracted to buy the parcel for $17million as part of Mr Tinkler’s failed coal loader bid but reneged and, following action by Mirvac, was ordered by the court to pay. When Mr Tinkler failed to meet the deadline, Mirvac lodged a contempt of court order to sequester his assets.
Eventually, Mr Tinkler made a deal to pay the $17million for the land, that was estimated at the time to be worth about $6million.