Federal Court sacks Hellyer Metals liquidator over asset transfer

For anyone who deals with Tasmanian resource and regional projects, the ruling goes to who gets to examine what happened to the mine’s value. The Examiner reports that major creditors raised concerns about the liquidator’s independence from the company’s former directors and about how the 2025 transfer was handled, which they say left them millions of dollars out of pocket.

The numbers

• $36.4 million: the lawsuit Hellyer Metals was hit with in late 2023, according to The Examiner.
• $25 million: the failed Goshawk Mining deal over an alluvial tin mine at Mount Cameron, which sat behind that suit.
• 30 hours: the time The Examiner says Mr Bailey was found to have billed for investigations over several months.

The paper reports that the Supreme Court placed a freezing order on the company only weeks after the share transfer, to stop it hiding its wealth. In his decision, Justice McElwaine described the new business as controlled by associates of the original directors, and said it allegedly paid nothing for the mine’s assets, The Examiner reports. That left Hellyer Metals hollowed out and unable to pay its debts.

The judge also found, per the same report, that Mr Bailey never asked for the company’s accounting records, and engaged a lawyer with a history of acting for the directors. He sent a draft of his investigative report to the former directors so they could comment, the court heard. The paper says Mr Bailey admitted he did not put creditors’ interests first.

What’s next

The Examiner reports that Hobart-based liquidator Adam Johnston has replaced Mr Bailey. It does not state creditor recovery figures or a timetable for examining the 2025 transfer.

The Australian Developer will update this story if further court orders are reported. Also in Tasmania today: Firmus tells the data centre inquiry its modelling shows a large jobs boost.