Clive Palmer has declared his party will stand a new candidate if a pivotal, government-deciding by-election is held in Ferny Grove.
The Queensland election hangs in the balance after the Palmer United Party candidate in the Brisbane seat, Mark Taverner, was found to be an undeclared bankrupt and therefore ineligible to stand.
Mark Furner, of Labor, was leading the count in the seat on Monday afternoon, which would give the party enough seats to form a minority government.
But Mr Taverner's disqualification means the results are set to go to the Court of Disputed Returns after the seat is declared by the state electoral commission.
The court is likely to rule that all votes for Mr Taverner are null and void, allowing the Labor result to stand, or that a by-election is required.
Mr Palmer apologised for running an ineligible candidate and said his party would contest any by-election.
"We certainly have to apologise for the fact we had a bankrupt running in Ferny Grove," Mr Palmer said in Canberra.
"It's a great sadness that happened and it's very disappointing.
"We will run another candidate."
It's uncertain which major party the PUP's preferences would flow to if there was a by-election.
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