The liquidator of Nathan Tinkler's Patinack Farm believes its 240 staff are likely to lose their jobs tomorrow.
Patinack Farm Administration is involved in horse racing and was forced into liquidation today by the Federal Court over a debt of around $17,000 to WorkCover South Australia.
Patinack says it was an administrative error but the liquidator believes the company's total outstanding debts come to more than $4 million.
Liquidator Tony Matthews says the workers will be sacked unless the company comes up with some money.
"I've discussed with one of the directors of the company my ability to employ, and I have stated that if I don't have funds in my liquidation account by tomorrow morning, I'll have no alternative but to terminate the employees," Mr Matthews said.
"I understand that WorkCover Queensland is owed in excess of $163,000 and the Australian Taxation Office is owed in excess of $4 million.
He believes the company may struggle to pay.
"The information I have about the assets of the company are that there aren't very many," he said.
Mr Matthews is calling on workers to contact him.
"I've asked that any person that believes they are an employee of the company should contact my office and advise of their particulars, and in particular the amount they claim is owed by the company, because at the moment I've asked for a contact list of employees but as yet I haven't received that." Liquidated Patinack Farm, the owner of more than 1,300 horses including Caulfield Guineas winner All Too Hard, was the second Tinkler company to be liquidated in as many days.
WorkCover Queensland supported WorkCover South Australia in its application and the two were also awarded just over $4,000 in costs between them.
Hunter Sports Group says the liquidation of Patinack will have no impact on Mr Tinkler's sporting teams, the Newcastle Knights and the Newcastle Jets.
A HSG spokeswoman said there was an administrative error in the WorkCover matter made by an associated company of Patinack Farm.
She said all outstanding debts, as well as costs, were in the process of being paid and it was business as usual for the two teams.
The news came a day after the NSW Supreme Court ordered another of Mr Tinkler's companies, Mulsanne Resources, be wound up for debts close to $30 million.
Mr Tinkler has managed to settle other lawsuits to avoid liquidation or a public expose of his finances.
In those deals last month, Tinkler companies paid $17 million to property firm Mirvac Group and $2 million to mining services company Sedgman Ltd.
Mr Tinkler, who had long held a dream to make it big in the "sport of kings", had splashed out more than $300 million since 2007 to build his Patinack horse racing business, including $19 million on 59 horses at one sale in 2008.
Last week, Patinack said it would sell hundreds more of its horses and shut down its Melbourne stable to cut costs after a rapid expansion in recent years.