The fortunes of Australian mining billionaire Nathan Tinkler continues to reverse after financiers seized on Wednesday his $600 million 20 per cent controlling stake in Whitehaven coal.

Mr Tinkler, who used to work in mines, needs to raise $12 million to settle litigation with Blackwood Corporation. The amount is due by the end of June 2013.

Besides the amount he owes to Blackwood, Mr Tinkler has a $634 million debt to U.S. hedge fund Farallon Capital Management, which picked up 9.9 per cent of Whitehaven, boosting its stake to 16.6 per cent.

The Whitehaven stake were sold at $2.96 a share, higher than the coal mining company's ruling share price, but lower than Mr Tinkler's estimate of the share's value which caused him to hold on to the stocks and a standoff that led his lenders to lose patience with him.

A few months back, his helicopter was also seized by creditors, although Mr Tinkler still holds some private assets including the Patinack Stud, royalties of $1 per tonne of coal produce from the Middlemount mine and interests in copper exploration in central Queensland.

Mr Tinkler is set to relocate to Singapore where he has moved his corporate base. He used to be an electrician in a mine, but at age 35 became Australia's youngest billionaire. However, several court cases decimated his wealth, further reduced with his losing Whitehaven where he used to be the largest shareholder.

The transfer of ownership of the Whitehaven shares is considered positive by IG Markets strategist Stan Shamu who was quoted as saying, "Investors would be glad that uncertainty has been removed and that the distraction will no longer be seen to have any impact on the performance of the business."

On news of the change in Whitehaven owners, shares of the coal miner went up 4.3 per cent and closed $2.20 in Sydney, but not enough to make up for the 37 per cent decline in shareprices of Whitehaven since January due to the 8 per cent cut in prices of coal at Newcastle.

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