Australia's National Basketball League "has been forced to take a shareholding" in a U.S. renewable energy and storage company in an effort to recoup more than A$1M ($720,000) in unpaid sponsorship "after taking court action to wind up its Australian subsidiary," according to John Stensholt of THE AUSTRALIAN. The "highly unusual agreement was struck" after the NBL and the Brisbane Bullets, both owned by "rich-lister and property developer" Larry Kestelman, were each left A$550,000 ($393,000) "out of pocket" after an Australian subsidiary of U.S. renewable energy company Pathion, "headed by a man accused of fraud, failed to pay a cent under a shirt sponsorship deal." A Victorian Supreme Court judge this month ordered Pathion’s Australian subsidiary "be wound up." But after "frantic negotiations last week" with Pathion’s management, the NBL "agreed to take equity that would ensure it recoups" the A$1.1M ($790,000) owed once Pathion raises an estimated $30M ($42M) from private investors. NBL CEO Jeremy Loeliger said that the move "was necessary in order for the league to receive its funds owed." Loeliger: "The parent company has stepped in to offer the NBL a novel approach to settling the matter, which will effectively result in the NBL becoming a shareholder in the U.S. company and discharge Pathion Australia’s debt to the NBL, while also providing the NBL with a continuing investment in U.S.-based Pathion" (THE AUSTRALIAN, 9/17).
