Nathan Tinkler and Blackwood Corporation have agreed to a $12 million settlement.
Ex-billionaire Tinkler can now pay the money to settle an outstanding share placement debt of $28.4 million.
A Blackwood spokesperson told Business Insider the deal “provides a road map to a settlement on clear terms for the first time,” after legal action forced Tinkler’s Mulsanne Resources into liquidation in 2012 in an effort to chase the $28.4 million owed for a one-third stake in the company.
Coal developer Blackwood told the market this morning it would suspend its legal action against Tinkler until 30 June to give him some time to come up with the money.
If he doesn’t pay by then, the legal action it has been pursuing against him in the NSW Supreme Court will continue, Blackwood said.
A spokesperson said in an emailed statement that Tinkler looked forward to making the payment before the 30 June deadline.
“The Tinkler Group is pleased to have agreed to settle this matter to each side’s satisfaction,” he said.
A 19.4% stake in Whitehaven Coal is Tinkler’s largest asset.
In its announcement to the market, Blackwood said some of Tinkler’s companies and his family trust had provided irrevocable undertakings that if “certain assets” were sold and generated a $12 million profit, Blackwood would get it.
It is understood Blackwood has not been told which assets could be sold to fund the $12 million settlement offer, which would leave Tinkler with no shares.
Tinkler’s spokesperson declined to say how the payment would be funded.
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