Firepower in strife over legal settlement

[Darren]

Gerard Ryle
July 14, 2007
SMH - of course...
THE problems for the controversial fuel technology company Firepower, which is also one of the country's biggest sport sponsors, are mounting, as its chairman has been asked to appear before a Perth court over an allegedly unpaid $4 million bill.

The action against Tim Johnston, who owns the Sydney Kings basketball team, is related to an out-of-court settlement he allegedly agreed to last December. It was made with Rhonda Nairn, the wife of the former Firepower chief executive Trevor Nairn, and a Channel Islands company, Bikpela Investments.

The move follows the recent and unexplained removal from sale in Western Australia of the company's best-known product, a brown pill Firepower says reduces fuel consumption and harmful emissions.

It has potentially wider implications for the sporting world, as Firepower's sponsorship money helps to underpin outfits from the South Sydney Rabbitohs rugby league team - owned by the actor Russell Crowe and the millionaire businessman Peter Holmes a Court - to the Western Force Super 14 rugby union club. The Herald reported in May that some individual deals Firepower had struck with rugby union stars appeared to have problems. Some bills had allegedly not been paid on time.

References to the sale of Firepower products in some Caltex service stations were recently removed from Firepower's website.

The action over the allegedly unpaid $4 million is being taken in the West Australian Supreme Court and claims $1.5 million is owed to Mrs Nairn and $2.5 million to Bikpela.

The matter is believed to relate to Firepower's move from the Cayman Islands to the British Virgin Islands in 2005. Mr Johnston has until next week to respond.

In a separate action in the West Australian District Court, Mr Nairn, a Perth accountant, says the firm owes him almost $290,000. Firepower also has until next week to respond to this action.

A spokesman for Firepower declined to comment. The company has previously declined to comment on its financial arrangements with sporting stars.

[travelling_gerry]

The Firepower web site hasnt has the so called "magic pill" on it web site since before this crap from SMH came out....

[Mtbeaver]

...as its chairman has been asked to appear before a Perth court over an allegedly unpaid $4 million bill.

Yeah. Just forget about that one did we?

[Jess]

It's just loose change...

[The EnForcer]

In my view Firepower needs to do some serious PR to get themselves back onside. I hope they are genuine, if not the damage that could be done is extreme.

[shasta]

In my view Firepower needs to do some serious PR to get themselves back onside. I hope they are genuine, if not the damage that could be done is extreme.

Ditto.

The thing that has really pissed me off big time in all the bad SYDNEY press so far is that Grumble's mouthpieces have been happy to snipe away at Peter O'Meara and the Western Force whilst Peter Holmes a'Court, Russell Crowe and Souths have only been mentioned in passing.

[Flamethrower]

That's cause Russ would find them and belt 'em round da ead wiv a phone.

[shasta]

Probably more to do with them being able to afford really expensive lawyers to sue their arses off. Rusty might be able to get back some of the "hush money" he's forked out over the years.