The Sunshine Coast resort owned by mining billionaire Clive Palmer has now been placed in administration amid an ongoing court battle regarding the ownership and management of the holiday destination.
Ginette Muller of KordaMentha has been appointed administrator to the Hyatt Regency Coolum Golf Resort and Spa as part of a voluntary administration. The resort continues to operate as normal and its 650 employees are still working.
“Our plan is to ensure it is business as usual at the resort,” Muller said in a statement.
This announcement comes after Clive Palmer lost an attempt to have Hyatt removed as the manager of the Coolum resort. Palmer had accused Hyatt of poor management and even siphoning funds worth millions of dollars over several years.
Palmer had sacked the resort’s general manager, Maurice Holland, a move that he said was in the resort’s best interests. Hyatt argued this was a breach of contract.
Yesterday, the case returned to the Supreme Court where Hyatt’s injunction was continued, allowing the company to manage the resort until the dispute goes to trial.
However, it was reported that Muller said in court yesterday that although investigations of the resort’s finances are still underway, she believes the facility might soon be insolvent.
Palmer did not appear in court.
The case continues today, with the parties expected to receive an answer on whether the injunction will continue.
Palmer’s stoush with Hyatt comes at a time when he is also battling Football Federation Australia, whose chairman is Frank Lowy.
As a result of the dispute, Palmer has founded an organisation called Football Australia, which he claims will act as an independent regulator of the game.
Palmer said the organisation plans to lobby the FFA and the Government for more transparency.