Australian tax authorities have moved to wind up troubled mining magnate Nathan Tinkler’s A-League football team Newcastle Jets and his rugby league side Newcastle Knights over unpaid debts.
It was widely reported Thursday that the Australian Taxation Office (ATO) has applied in the Federal Court for a liquidator to be appointed for the Jets, the Knights and their parent company Hunter Sports Group, due to debts of AUS$2.7 million (US$2.8 million).
They are all owned by the Singapore-based Tinkler, who became one of Australia’s richest young entrepreneurs but who is under growing financial pressure.
Last week it emerged the coal baron had lost access to his private jet and helicopter as well as his luxury box at the ANZ Stadium in Sydney.
Tinkler’s fortune, built on a series of canny coal transactions, has plummeted as coal prices plunged on slowing demand, leaving him with significant debts.
According to state broadcaster ABC, a hearing has been set for February 20.
The ATO made the applications on the grounds of insolvency, saying the defendants had failed to pay what was owed within 21 days after being notified in September.
However, the Hunter Sports Group said it had not heard from the ATO and was only alerted by the media that action was under way.
“We are surprised by the move by the ATO, as we have not received notification,”the group said in a statement.
“We advise that any outstanding sum will be paid as soon as possible — well before the reported hearing date on the matter next February.”
The statement added that it was business as usual for both the Knights and the Jets and no further comment would be made.
Football Federation Australia said it had been “given assurances by Hunter Sports Group, owner and operator of Newcastle Jets, that the club’s operations will not be affected”.
The Jets, featuring former England international Emile Heskey, are due to play Perth Glory on Friday evening.
The National Rugby League also expressed confidence the Knights’ future was not in jeopardy, saying a Aus$20 million bank guarantee was a condition of Tinkler taking over the club.
“Those safeguards were a condition of ownership and are there to ensure the club’s future,” NRL interim chief executive Shane Mattiske told reporters.
Aus taxman moves to wind up Jets, Knights
