Joseph Gutnick bankruptcy examination

WHAT HAPPENED?

Former mining magnate Joseph Gutnick declared bankruptcy last July, owing creditors more than $275.5 million. He told his trustees he had only $16,087 in cash.

WHO IS OWED MONEY?

At the time he filed bankruptcy, Indian Farmers Fertiliser Cooperative Limited were pursuing Mr Gutnick for $54 million. According to his statement of claim, Mr Gutnick's wife Stera Gutnick is also owed $30.7 million. Debt is also owed to other family businesses.

EXAMINATION

Registrar Timothy Luxton has ordered Mr Gutnick, his wife Stera Gutnick and eldest son Mordechai Gutnick to appear in the Federal Court as part of an examination into his bankruptcy. Mr Gutnick's lawyer, accountant and other business associates have also appeared. Legal representatives for creditors Indian Farmers Fertiliser Cooperative Limited and bankruptcy trustees Pitcher Partners have led questioning.

REVELATIONS

Mr Gutnick's wife Stera Gutnick has been unable to explain what a $30.7 loan to her husband was for. She also could not shed light on a number of companies where she was listed as director.

It was also revealed she was paid $285,000 a year working for the family-controlled business, Merlin Diamonds, as a jewellery design trainee. Her salary was more than seven times what her husband earned.

Mr Gutnick took exception to "disgusting" press reports about his wife's wage and said decisions about his finances were left to his accountants and lawyers.

WHAT'S NEXT

Mr Gutnick is due to reappear in court on May 9.