Tinkler to meet old mate in court - The Australian

Nathan Tinkler and Matthew Higgins, working as electricians, struck it big in 2006 after they raised a $1 million deposit to buy the rights to a coal deposit in central Queensland. Source: The Daily Telegraph

NATHAN Tinkler and the former business partner who shared in the entrepreneur's first golden deal are expected to battle it out in a lengthy trial next year.

Lawyers for Mr Tinkler yesterday told the Queensland Supreme Court the conflict between the entrepreneur and his former business partner - and fellow former electrician - Matthew Higgins was likely to go to trial.

In 2006 Mr Tinkler and Mr Higgins, then both working as electricians, struck it big after they raised a $1 million deposit to buy the rights to a coal deposit at Middlemount in central Queensland.

The next year they sold those rights to Macarthur Coal for cash and shares worth more than $250m.

In addition both men were to receive $1 from every tonne of coal mined from the site.

Mr Tinkler's royalty share from that deal alone was thought to be worth more than $20m.

It is those royalties that has caused the dispute, with Mr Higgins - via his wife Ruth in whose name his royalties are held - suing Mr Tinkler over concerns some royalty payments were being diverted to one of Mr Tinkler's private accounts.

Yesterday Kylie Downes SC, for Mr Tinkler, asked judge David Jackson QC to list the matter for a directions hearing as soon as possible in the new year.

A consent order was agreed between the parties, and signed off by Justice Jackson, to have a directions hearing on January 31.

Separately the members' club of the Newcastle Knights NRL team - which sold the club to Mr Tinkler's Hunter Sports Group last year - has called for an extraordinary general board meeting on Monday as Mr Tinkler's financial woes continue to mount.

Newcastle Knights Members Club chairman Nicholas Dan has called for the meeting to consider putting in place a rescue package to take back control of the club if Mr Tinkler faces further financial problems.

Mr Dan and fellow board members have asked HSG chief executive Troy Palmer and Mr Tinkler to attend the meeting.

This week the Australian Taxation Office applied to the Federal Court in Brisbane to have HSG, the Knights and the Newcastle Jets Soccer club - also controlled by Mr Tinkler - wound up over unpaid taxes of $2.7m.