Fallen coal billionaire Nathan Tinkler has suffered another setback, quitting his post as chief executive of a Hunter Valley-focused coal company as he battles a bankruptcy claim.
Australian Pacific Coal announced on Wednesday Mr Tinkler had resigned as managing director and chief executive officer following a Federal Court bankruptcy hearing on Tuesday.
The court found finance group GE Commercial was entitled to make Mr Tinkler bankrupt over a $2.8 million debt owed following the sale of his former corporate jet by receivers and issued a sequestration order against his estate.
However, the court has granted a 21-day stay on the sequestration order pending an appeal.
In a statement Australian Pacific Coal chairman Peter Ziegler said the judgement "removes Mr Tinkler's ability to perform his current role" but noted it was unrelated to Mr Tinkler's work at the company, which he joined in October.
"Mr Tinkler will continue providing services in a technical advisory capacity to the company," Mr Ziegler said.
Mr Tinkler told The Australian newspaper he would appeal and had stepped down "pending the outcome of that appeal".
The one-time mining magnate was once Australia's youngest billionaire but his empire collapsed under mounting debts in 2012 as global coal prices plummeted.
Mr Tinkler was forced to sell off assets as debts grew, including his Patinack Farm racehorse operation.
In recent months he had sought to re-enter the coal industry, succeeding with ASX-listed junior Australian Pacific Coal, which in December bought a majority stake in the mothballed Dartbrook mine in the Hunter Valley from mining giant Anglo American.
The purchase price comprised $25 million in cash and up to $25 million in royalties.
