Hellyer Metals liquidator lashed for 'serious lack of judgement'

Detailed summary

The liquidator of a company involved in a Tasmanian gold mine has been removed from the role, with a federal judge ruling the man had made "a serious error of judgement" and had failed to properly investigate the company.

The liquidator of a company that part-owned a Tasmanian gold mine has been removed from the role by a federal judge, who said the man had failed to properly investigate the company's transactions.

Hellyer Metals is being pursued in court for damages totalling more than $36 million over a failed business deal.

A federal judge has fired the liquidator of Hellyer Metals, which part-owned a north-west Tasmanian gold mine, saying he failed in his duties and behaved in "objectively concerning" ways.

The decision comes 12 months after the Tasmanian government ordered the Hellyer Gold Mine be shut down temporarily over unpaid debts, which occurred at about the time a "highly questionable" transaction was made from Hellyer Metals to an associated company, Celestial Group.

At the same time, Hellyer Metals was being pursued in court by resources company Goshawk Mining and investment firm Saxby Capital for damages totalling more than $36 million over a failed business deal.

On Tuesday, federal court Justice Shaun McElwaine removed Hellyer Metals liquidator Liam Bailey and ordered him to hand over all relevant records to Adam Johnston, who he appointed in Mr Bailey’s stead.

Justice McElwaine said "very real" questions on Mr Bailey's impartiality had been raised, and that along with his lack of action since his appointment in January, it was clear "a new liquidator with a laser-like focus" was required.

In a lengthy decision, Justice McElwaine detailed a complex timeline over recent years that resulted in Hellyer Metals entering voluntary administration in January this year and appointing Mr Bailey as liquidator.

Justice McElwaine said at that time Hellyer Metals had recently conducted the transaction in question, after which Goshawk Mining obtained a Supreme Court order freezing $36.4 million worth of assets in Hellyer's associated companies.

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