Clive Palmer has settled the majority of the $200 million lawsuit over the collapse of Queensland Nickel.

Mr Palmer has struck a deal with government-funded liquidators over $66 million in taxpayer funds to cover entitlements for sacked workers.

The former MP did not attend court this week to hear his barristers outline a settlement that had been reached with the special purpose liquidators.

He later released a statement saying he felt “vindicated” that “the witch hunt against him was finally over”.

Special purpose liquidator (SPL) Stephen Parbery said the $66 million deal provided for the “full repayment of the Commonwealth's Fair Entitlements Guarantee (FEG) debt, all other outstanding employee entitlements, and a full recovery of the majority of unsecured creditors”.

There are still some disputed creditor claims are still to be dealt with by general purpose liquidators against Mr Palmer's flagship company Mineralogy.

This includes allegations that Mr Palmer was acting as a shadow director and the company traded while insolvent — claims he denies.

“The complexities of the legal issues facing Mr Palmer and his co-defendants, and the resistance from these parties to the recovery actions, caused lengthy delays to the commencement of the trial,” Mr Parbery said.

“With the full weight of the evidence being laid before the defendants ahead of the trial, settlement negotiations were initiated as the trial commenced.”

An account of the refinery’s financial woes is accessible here.