Jobs saved as Tinkler agrees to pay up

The liquidator says the management of Patinack Farm will provide funding to keep the company running and pay creditors.

The Federal Court yesterday ordered the company into liquidation over a debt of around $17,000 to Work Cover South Australia.

But Patinack Farm says the debt was not paid because of an administrative error and the company is expected to fight the liquidation order.

The court-appointed liquidator Tony Matthews says Troy Palmer, a director of Patinack, has advised him it is management's intention to fund the liquidator to meet trading and other expenses to enable the company to continue to trade and pay all creditors in full.

The decision means Patinack Farm's employees, estimated to number around 240, will not have their employment terminated today, which had looked like a real possibility this morning.

Earlier, Mr Matthews said he expected the appeal process against the liquidation order to start today.

"[Patinack Farm] has to make an application to the court and demonstrate that it is solvent that is that it can pay its debt as and when they fall due," he said.

He noted this morning that Patinack Farm has other outstanding debts including $160,000 to Work Cover Queensland and $4 million to the tax office.

"I've had discussions with the solicitor acting for the director and advised that I don't have any assets that I'm aware of in this company and there's, I'm told, some 240 employees of the company," he said.

"Without any resources I'll have no alternative but to terminate their employment." 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.

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