What was intended as a rescue strategy salvaging something from the failure of advertising agency Lionize subsequently saw Wellington’s entrepreneurial investor Peter Dowell ordered to repay $1.5 million, forced to buy-back the business.
The High Court was told Mr Dowell joined Lionize director Michael Taylor in a 2022 salvage operation, picking the bones out of Lionize after it went into administration reportedly owing five million dollars.
They set up Playmaker Media Ltd, representing potential future income which might eventuate from former Lionize staff continuing in business, tapping existing industry contacts.
Wololo Ltd, controlled by Tim Pointer and Mat Rowe, purchased Playmaker Media following Mr Dowell’s indications the newly revived business could generate annual revenues of between $500,000 and $800,000.
Mr Dowell signed a put option and a guarantee, undertaking to buy back the business if a $500,000 target was not achieved in year one. He also mortgaged, as security, a Petone property owned by a company he controlled: Cuba 444 Ltd.
Before the year was up, it was clear Playmaker Media would not get anywhere near projected sales targets.
Wololo Ltd put Cuba 444 into liquidation, forcing sale of the Petone property; getting nothing. There was no surplus on sale after payment to a prior ranking secured creditor.
With Mr Dowell facing enforcement of the put option, he attempted to find new investors willing to take over Playmaker Media.
The High Court was told a third party buyer named as Close to Home Pty Ltd did sign an unconditional contract agreeing to pay AUD 1.7 million, but never settled.
When sued by Wololo Ltd, Mr Dowell claimed legal action should be taken against the defaulting Close to Home; any liability on the put option expired on this third party sale, he claimed.
In the High Court, Justice Grau ruled any concessions Wololo Ltd allowed in giving Mr Dowell time to find a third party buyer did not detract from the clear and unambiguous put option and guarantee he had signed.
He was ordered to pay back $1.5 million to Wololo Ltd.
The High Court was told Mr Dowell was previously offered an opportunity to repay the debt by instalments, but did not take up Wololo’s offer.
Wololo Ltd v. Dowell – High Court (17.04.26)
26.139