An ill-looking and out-of-breath Clive Palmer has told a court he paid for two luxury cruises for his nephew Clive Mensink, who has an outstanding warrant for his arrest for failing to appear over Queensland Nickel's collapse.

Key points: Mr Palmer clutches sick bag, breathes heavily during Federal Court evidence

Mr Palmer clutches sick bag, breathes heavily during Federal Court evidence Tells court he funded luxury cruises for nephew, Clive Mensink, wanted for questioning

Tells court he funded luxury cruises for nephew, Clive Mensink, wanted for questioning Also sent Mr Mensink $10,000 while overseas in "entitlements" from Queensland Nickel

Mr Palmer was ordered to give evidence on Wednesday in the Federal Court after a no-show sick day on Tuesday.

He hobbled into court clutching a sick bag, with a breathing apparatus, pillow and blanket in tow.

Before proceedings began, the former MP lay on a couch outside the courtroom, using the breathing device.

He is recovering from pancreatitis and is on a morphine-based medication, which he said made him lose his memory.

His barrister, Andrew Boe, told the court his client ingested painkillers this morning and had been on them for several days.

Mr Boe said it could be difficult for Mr Palmer to give an accurate account because of the pain medication and did not want to be "accused of unwittingly giving false evidence".

Mr Palmer clutched a sick bag at the Federal Court on May 10. ( AAP: Dan Peled )

Mensink 'met with Palmer's father-in-law in Bulgaria'

Lawyers for the special purpose liquidators of Queensland Nickel called on Mr Palmer to hand over details of all recent communication with his nephew and former Queensland Nickel director Mr Mensink.

Mr Mensink is on an extended overseas holiday and has repeatedly failed to appear in court.

Mr Mensink is wanted in the Federal Court for questioning over Queensland Nickel's collapse. ( AAP Image: Dave Hunt )

Mr Palmer said he spoke with his nephew while Mr Mensink was in the Caribbean on a cruise last year.

He said Mr Mensink was dissatisfied with how he was being treated in Australia and was contemplating not returning home.

The court also heard Mr Palmer's Australian-based Bulgarian father-in-law "coincidently" bumped into Mr Mensink twice overseas, once on a cruise and once in the Bulgarian capital Sofia in February.

The court heard Mr Palmer had armed his father-in-law for the chance meeting with $60,000 for Mr Mensink, which he described as part of $200,000 worth of entitlements for working for him.

However, Mr Mensink only received $10,000 of the cash, the court was told.

'I'm drugged with morphine'

Outside court on Wednesday, Mr Palmer said he urged Mr Mensink to see a doctor and talk about his problems and "then come back to Australia".

Mr Palmer also took the opportunity to explain he had been in "great pain" and mentioned his memory problems.

"I'm taking morphine and it's extraordinary that someone on narcotics can be required to give evidence," he said.

"I can't remember my Amex PIN number for example, so this is just confirmation that this is a political witch-hunt."

Mr Palmer was grimacing as he left the Federal Court. ( AAP: Dan Peled )

Mr Palmer said he was physically unwell and was in a "great deal of pain this morning".

"I can't remember some things because of the morphine, like not to do with this, Mensink, but just some things, I forgot my daughter's middle name for example," he said.

"I'm trying to be as helpful as I can in the circumstances, I'm drugged with morphine."

Mr Palmer's security guard carries his boss' pillow, blanket and sick bag. ( ABC News: Lexy Hamilton-Smith )

Mr Palmer due to reappear

Justice John Dowsett told Mr Palmer's lawyer his client "may have to refrain" from taking the morphine he is on so he can give coherent evidence at his next appearance, due next week.

"I am not going to tell him not to take it," he said.

"But it is going to have to be done, not necessarily today.

"Is he not able to ration himself?"

Justice Dowsett added he would "accept he would try and abstain he if could".

Mr Palmer, the former owner of Queensland Nickel, left the court looking a little less pale saying he would try to reappear if he was well enough.

Queensland Nickel collapsed last year with $300 million in debt, leaving 800 people out of work.