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So I hate rehatching the Firepower issues, but this story was on ABC news on Thursday and is one of the best reports I have read about the issue.
Firepower creditors left in the cold
PM - Thursday, 31 July , 2008 18:40:00
Reporter: David Weber
PETER CAVE: The administrators of Firepower Operations confirmed today that the only option was for the company to be liquidated.
But creditors owed millions dollars are unlikely to get anything.
Among them are the defunct Sydney Kings basketball team, the Western Force Super 14 Club, and various athletes, lawyers and individuals.
Firepower had marketed a fuel pill which was supposed to increase fuel efficiency. Yet there appears to be little evidence that it worked.
The administrators are now hoping to sell hundreds of barrels of fuel additive, which reportedly does work. However, there's unlikely to be any return from that either.
David Weber reports from Perth.
DAVID WEBER: Investors had put tens of millions of dollars into Firepower British Virgin Islands, the owner of Firepower Operations in Australia.
The administrators Hall Chadwick said today there wasn't a rescue plan, and the magic pill didn't have a future. Only a few creditors were at the meeting to hear the bad news.
One woman who didn't want to be identified said her company had been hit hard.
INVESTOR: Not surprised at all.
DAVID WEBER: Can I ask how much money you'd put in?
INVESTOR: We're a small company so under $50,000, so … but to us that's a lot.
DAVID WEBER: Did you have hopes this fuel pill would work?
INVESTOR: To be honest, no. We kind of did our investigation through the media and whatnot, we knew anyway in the end. So today basically confirmed it's over.
DAVID WEBER: But you had hopes starting out I suppose?
INVESTOR: Well we did like especially going into administration, we were hoping you know some cents in the dollar back. We'd obviously read … the rescue through the media, but no, that's it. So, we're not surprised, I'm not surprised.
DAVID WEBER: What would you say to Tim Johnston if you saw him here today?
INVESTOR: No comment.
DAVID WEBER: Firepower director, Tim Johnston, didn't attend today's meeting; it's understood he was in the UK.
He provided a statement which said he'd been working around the clock to protect shareholders' interests and an offer from the Timis Group in the UK would have allowed continued trading but the offer was rejected.
All of the Firepower Operations staff have been dismissed. They'd been working for free for several months.
Will Singer had been working for Firepower in South Africa. He said today he was owed more than $200,000. Mr Singer had this to say about Tim Johnston.
WILL SINGER: To be quite honest, he's a very elusive sort of … a very … sort of a guy, very friendly. Good to get along with. Thinks on his feet. Probably not the most astute businessperson.
DAVID WEBER: Mr Singer said he believed Mr Johnston had honest intentions; he'd just received bad advice.
The Australian Securities and Investments Commission has initiated civil action against companies linked to Mr Johnston.
Hall Chadwick partner, Geoffrey McDonald, said the company will be wound up in the Federal Court.
GEOFFREY MCDONALD: There's no money to be had anywhere else that's the thing, we can't see where there is any money.
One thing that we've been talking about is the fact that this company has been structured and has the overhead costs of a worldwide multinational. You're talking about offices all around the world, people employed all round the world, assistants, you're talking about all sorts of things like that for a company that's really not selling much.
DAVID WEBER: So creditors will only make money out of the barrels of fuel additive if it's sold?
GEOFFREY MCDONALD: I doubt if the creditors are going to get any money. The employees might get some of their money but the employees are going to get paid… we'll get our fees, the liquidators will get their fees, there'll be investigations, lawsuits against Mr Johnston but what's there?
DAVID WEBER: Hall Chadwick only has responsibility for Firepower Operations. Creditors are owed more than $16-million from the Australian arm.
Geoffrey McDonald says the administrators now have several hundred barrels of a chemical which reportedly improves fuel efficiency.
GEOFFREY MCDONALD: Cost price was $1,700 a barrel. I'll look at any reasonable offer. And for the pills; make me an offer.
PETER CAVE: Hall Chadwick partner, Geoffrey McDonald, ending that report from David Weber.
PM - Firepower creditors left in the cold