Hellyer Metals liquidator removed as federal court orders new probe

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Hellyer Metals liquidator removed

Highlights

Federal Court Justice Shaun McElwaine removes Liam Bailey as Hellyer Metals liquidator citing failure to investigate company transactions and impartiality concerns.
Hellyer Metals faces over $36 million in damages claims from Goshawk Mining and Saxby Capital after a failed business deal, with asset-freezing court orders issued.
Judge highlights a disputed asset transfer to Celestial Group as highly questionable and says substantial creditor recovery depends on a thorough new investigation.

Federal court ruling and investigation concerns

As reported by ABC News, Federal Court Justice Shaun McElwaine removes Liam Bailey as liquidator of Hellyer Metals and orders him to hand over all relevant records to newly appointed liquidator Adam Johnston. The judge says Bailey fails to properly investigate the company’s transactions and that "very real" questions arise over his impartiality.

Justice McElwaine says Hellyer Metals enters voluntary administration in January 2026, with Bailey appointed liquidator on January 22, 2026. In a lengthy decision, the judge says Bailey undertakes little investigative work before the current proceeding and only moves into action after court intervention is sought by Goshawk Mining and Saxby Capital.

The judge also criticises Bailey’s conduct in choosing a lawyer known to Hellyer Metals to represent him and in providing a draft statutory report to the company’s directors. Justice McElwaine says that decision amounts to a serious error of judgement and demonstrates a lack of independence.

Creditor stakes and Tasmanian mining fallout

Hellyer Metals, which part-owns a north-west Tasmanian gold mine, is being pursued in court by Goshawk Mining and Saxby Capital for damages totalling more than $36 million over a failed business deal. The ruling comes about 12 months after the Tasmanian government orders the Hellyer Gold Mine to shut temporarily over unpaid debts.

Justice McElwaine says the disputed transaction from Hellyer Metals to associated company Celestial Group is prima facie highly questionable because of its timing, the individuals behind it and the apparent consequence that assets may have been stripped from the company for no valuable consideration. He adds that Goshawk Mining later obtains a Supreme Court order freezing $36.4 million of assets in Hellyer’s associated companies.

The judge says the liquidation remains at an early stage despite Bailey’s January 2026 appointment, and that potential recovery for creditors is very substantial. In those circumstances, he says a new liquidator with a laser-like focus on quickly and thoroughly investigating the transaction is in the best interests of the administration.

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