Queensland Nickel's creditors have raised serious concerns about a government plan to pursue Clive Palmer and make sure taxpayers don't foot the bill for his workers' entitlements.
Creditors have voted to liquidate the federal MP's company, and the federal government has said taxpayer funds will be used to pay most of $74 million owed in entitlements to almost 800 sacked workers.
The government plans to seek the appointment of a special purpose liquidator to go after Mr Palmer's assets in the hope of recouping money to be paid out under its Fair Entitlements Guarantee Scheme (FEGS).
But creditors say they're yet to be told who will pay for the special liquidator and warn that unless the government wears the cost, it could mean less money for mum-and-dad suppliers when Queensland Nickel is carved up.
"It sounds very much to us as if the general body of creditors is going to be asked to pick up the bill," a member of a committee of creditors told a meeting in Townsville on Friday.
"That probably doesn't affect employees very much. We can rely on FEGS," he said.
"What it will affect is the return to trade creditors, mum-and-dad trade businesses who've faithfully supplied Queensland Nickel over the years."
The meeting was told that despite efforts by the company's administrators and now liquidators, FTI Consulting, no one from the Department of Employment was available to address Friday's creditors' meeting.
FTI will meet with officials next week seeking to clarify who would pay if the government wins court approval to appoint a special liquidator to work alongside FTI.
FTI's John Park said there'd been inadequate consultation about the government's plan, and it would inevitably result in costly duplication.
"The things the creditors are asking us is who is going to pay for the special purpose liquidator? Is the government going to want to be reimbursed from the assets? They are all valid questions but we can't answer them now," he said.
A statement from the employment department, read to creditors at the meeting, said the special liquidator would have a narrow focus.
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