Firepower founder to address creditors

The founder of failed fuel company Firepower Tim Johnston will reportedly address creditors at a meeting next week, as the Federal Court granted more time to administrators to carry out their work.

Administrator Brent Kijurina told the ABC Mr Johnston had contacted him by email and had indicated he would be "present at the meeting by telephone".

Hall Chadwick Sydney partners Geoffrey McDonald and Mr Kijurina were appointed administrators to Firepower Operations Pty Ltd on Monday, just hours after the Australian Securities and Investments Commission launched a civil action against Mr Johnston, Perth-based financial adviser Quentin Ward and five companies claiming they were involved in selling shares without a prospectus.

Meanwhile Hall Chadwick were today granted a short period of time by the Federal Court to provide legal argument that it is in the creditor's best interest for the administration to continue.

The grant follows a petition by WA creditors, including interests linked to mining services player Ross Graham, to wind up the company.

The court would wait until August 1, and possibly later, to make a final decision on a petition to wind up the company, the statement said.

While the UK investors continued their due diligence, the administrators would be pleased to receive expressions of interest from any other party in relation to a rescue package.

Hall Chadwick said it had been in contact with the Australian Securities and Investments Commission and would assist the watchdog's investigations.

It said Firepower had a large amount of stock and prospects of good ongoing orders for its bulk fuel supplies.