June 4 (Bloomberg) -- Nathan Tinkler, the former Australian mining billionaire, agreed to pay A$12 million ($11.7 million) to settle a dispute with Blackwood Corp. over a failed share purchase.
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.
“The Tinkler Group is pleased to have agreed to settle this matter to each side’s satisfaction,” the company said in an e-mailed statement. “We look forward to fulfilling this agreement over the next month.”
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. 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.
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 electrician-turned-entrepreneur was ranked as Australia’s youngest billionaire at the age of 35 by BRW magazine in 2011 before a series of court cases and asset sales helped reduce his wealth.
The case is: In the matter of Mulsanne Resources Pty 2012/00296966. Supreme Court of New South Wales (Sydney).
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