Federal Court of Australia removes Hellyer Metals liquidator — ABC News Australia
The Federal Court of Australia has removed Liam Bailey as liquidator of Hellyer Metals, which held a stake in the Hellyer gold mine in north-west Tasmania. Judge Sean McElwaine ordered Bailey to hand over all liquidation-related records to Adam Johnston, whom he appointed as the new liquidator. As ABC News reports, the court found the replacement of the liquidator justified and necessary.
Doubts about impartiality
The judge stated that serious questions had arisen regarding Bailey’s impartiality. He also drew attention to the liquidator’s insufficient activity after his appointment on January 22, 2026. In the court’s assessment, Bailey did not conduct a proper investigation into the company’s activities and the circumstances of one of its transactions, despite having access to a significant volume of documents and financial resources.
Resources company Goshawk Mining and investment firm Saxby Capital applied to the court, stating that they had lost confidence in the liquidator and his impartiality. At the same time, Hellyer Metals is being pursued in court for more than $36 million in damages in connection with an unsuccessful business deal.
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Transaction with a related company
The court examined a transaction between Hellyer Metals and its related company, Celestial Group. Judge McElwaine noted that the timing of the transaction, the people involved in it, and its consequences raise questions. According to him, there are prima facie grounds to believe that Hellyer Metals may have been stripped of assets without valuable compensation.
Following the transaction, Goshawk Mining obtained a Supreme Court order freezing $36.4 million in the assets of companies associated with Hellyer. The court also criticised Bailey’s decision to engage a lawyer known to Hellyer Metals and to provide the company’s directors with a draft statutory liquidation report. The judge stressed that these directors were closely linked to the transaction that required scrutiny.
