Tinkler Agrees to Pay A$12 Million to Settle Dispute

Nathan Tinkler, the former Australian mining billionaire, agreed to pay A$12 million ($11.7 million) to settle a dispute with Blackwood Corp. (BWD) over a failed share purchase, the company said.

Tinkler has until June 30 to raise the money by selling assets, the Brisbane-based coal company said today in a statement. He agreed in May 2011 to buy A$28.4 million of shares in Blackwood, though the deal fell through when Tinkler failed to raise the money.

Blackwood sued Tinkler and his Mulsanne Resources Pty, which was ordered liquidated by a New South Wales state judicial officer in November. The liquidators applied on May 22 to freeze Tinkler’s assets, including his 19.5 percent stake in coal producer Whitehaven Coal Ltd. (WHC) and a family trust managed by his wife, which Tinkler said holds about A$1.4 billion of assets.

“If payment is not made by 30 June 2013 then legal proceedings against directors and the former company secretary of Mulsanne Resources and the freezing order application are to continue,” Blackwood said in the statement.

Tim Allerton, a spokesman for Tinkler at City Public Relations, said he would seek comment from the mining entrepreneur.

Tinkler was listed as one of three directors of Mulsanne in an Australian Securities and Investments Commission document. He knew Mulsanne had no assets when he offered to buy the Blackwood shares, Blackwood had said previously. That amounts to insolvent trading, which is illegal in Australia, the company said.

The case is In the matter of Mulsanne Resources Pty 2012/00296966. Supreme Court of New South Wales (Sydney).

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

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