Whitehaven Coal says it will vigorously defend itself against legal action launched by former mining baron Nathan Tinkler, who says the company breached contract and was misleading when it bought two of his companies in 2012.
In a release issued to the ASX on Monday, Whitehaven said Mr Tinker had commenced proceedings in the Supreme Court of Queensland on behalf of himself and others who were issued 'milestone shares' when Whitehaven bought Boardwalk and Aston Resources in a $5.1 billion deal in May 2012.
Whitehaven said Mr Tinkler claimed to be the trustee of Boardwalk Resources Trust, and that he held certain milestone shares, which vested or matured if certain developmental goals were met.
However, Whitehaven said it understood that Boardwalk Resources Investments Pty Ltd was the owner of those shares, and that the company was in liquidation.
"Tinkler makes various allegations against Whitehaven concerning an alleged breach of contract and misleading or deceptive conduct in connection with the milestone shares," Whitehaven said.
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"Whitehaven denies in the strongest possible terms any wrongdoing, will vigorously defend the proceedings, and seek to have it dismissed at an early stage."
Once Australia's youngest billionaire, Mr Tinkler's fortune was savaged by a slump in coal prices and he was declared bankrupt in March 2016.
At the height of his wealth, Mr Tinkler became one of the biggest buyers of racehorses in the industry, and briefly owned the Newcastle Jets A-League club and Newcastle Knights NRL club.
In May last year Tinkler and two of his closest business allies were banned from managing a company for at least three years for their roles in the collapse of several businesses.
