The ruling is the latest roadblock for Tinkler, who has struggled to revive his coal empire in the past few years.

He is now blocked from heading up Australian Pacific Coal, which had been earmarked as the vehicle for his revival.

At this stage the bankruptcy order has been stayed for 21 days and Tinkler has indicated he will appeal the judgement, which centres on a dispute over the sale of his private jet.

The one-time coal baron was previously earning $A500,000 a year at AusPac, and will continue to provide services to the company as a technical adviser.

Under his leadership AusPac made a number of steps forward, announcing plans to buy a majority stake in Anglo American’s Dartbook mine in New South Wales.

Many spectators doubted Tinkler’s ability to secure finance for the deal, but the detractors were proved wrong after a $20 million convertible loan was sealed earlier this month.

And while the future remains hazy for the troubled entrepreneur, he does not seem to be giving up without a fight.