RESOURCES magnate Clive Palmer has fronted court to fight a bid by liquidators to have the millionaire's assets frozen.

The taxpayer-funded liquidators of Queensland Nickel launched the bid to freeze Mr Palmer's assets in August as part of a wider lawsuit to claw back money owed to the Federal Government after the company collapsed with $300 million in debts in 2016, costing almost 800 job.

At a hearing in Brisbane Supreme Court, Tom Sullivan QC said liquidators were concerned Palmer would dissipate his assets and forgive loans to himself and others if the court did not grant the freezing application.

Mr Sullivan said it was important a very specific order was drafted to avoid money being "gifted away" or dissipated in unforeseen ways.

Dominic O'Sullivan QC, who is acting for a number of Palmer's companies, said it was "irrational and fanciful" to suggest Palmer and his companies wouldn't pay an order imposed by the court and risk liquidation of his considerable assets.

The hearing continues.