Former Queensland Nickel director Clive Mensink has been diagnosed with clinical depression and anxiety and returning to Australia to face a public court examination would prove difficult, a Brisbane court has been told.

Special purpose liquidators of Queensland Nickel are seeking in the Federal Court an arrest warrant for Mr Mensink, who was the company's sole director when it collapsed last year leaving 800 people out of work and debts of about $300 million.

Mr Mensink went on an overseas holiday in June and has ignored several summons to appear in the court, where he would be questioned over the Townsville refinery's collapse.

His barrister Alex Nelson told the court his client would find it too stressful to return to Australia.

He cited the case of Christopher Skase, suggesting serving an arrest warrant to someone overseas proved ineffective.

Mr Mensink's last known location was Boston but he now may be in Netherlands, the court heard.

"He has some medical issues that have been attested to including clinical depression and anxiety," Mr Nelson said.

'How is this warrant going to be served?'

Justice John Dowsett queried how an arrest warrant would be served on Mr Mensink, saying the court was reluctant to issue orders that could not be enacted.

"How is this warrant going to be served?" he said.

The Yabulu refinery went into liquidation last year, which saw 800 people lose their job. ( AAP )

"My experience contacting people overseas is they're as easy to find as they want to be.

"It might act as a deterrent not for him to come back.

"He can tell you where he is today, he might not be there tomorrow.

"He seems to be getting on every means of transport known to man, except a spaceship."

Special purpose liquidator PPB Advisory barrister David de Jersey argued an arrest warrant should be issued because Mr Mensink had continually flouted previous court orders.

He said serving the warrant would present a difficulty, but recommended arresting Mr Mensink on his return to Australia.

Mensink now a retiree

In an affidavit read in court, Mr Mensink listed his occupation as "retired".

He claimed it would cost $50,000 to come back to Australia prior to his intended return date in July this year and his deteriorating financial position would not allow him to return any earlier.

While his barrister cited his medical condition, a medical report did not specify when Mr Mensink's depression was diagnosed or its cause.

Justice Dowsett suggested Mr Mensink would be better off returning to Australian where he would have a support structure.

The hearing has been adjourned.