Tinkler’s financial position is also being questioned after he pulled out of a $5.3 billion privatisation of his 21.4% owned Whitehaven Coal, which has dropped 10% in value this value this week.

He also owes $17 million to the Mirvac property group, which will be taking his Buildev group to court over a failed Newcastle property in relation to his aborted bid to build a coal shipping terminal.

Mulsanne Resources recently missed an extended deadline to pay the $28.4 million to Blackwood Corporation agreed as part of a placement.

“Blackwood would like to advise that it has now commenced the process exercising its legal rights against Mulsanne Resources,” the company said in a statement.

“The Blackwood board continues to investigate and consider its options with respect to seeking recovery of the amounts outstanding.”

Tinkler, who now resides in Singapore, is believed to hold more than $500 million of personal debt.

He has a history of making countercyclical calls on assets purchases with his investment in Macarthur Coal and his acquisition of Maules Creek from Rio Tinto. But he may have overextended himself at the wrong time on this occasion with his debts mounting while the price of coal and the value of his equity in Whitehaven plunges.

Tinkler’s future with Whitehaven is now in doubt. The highly-geared Tinkler may have to sell his stake in Whitehaven at firesale prices if its shareprice continues to decline through short selling.