Wellington Capital PIF/Octaviar (MFS) PIF

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Good day selciper,
Is it possible that such results could be listed outside WC records management as maybe required by, say, "Public disclosure" group that we may not be aware of?
For example, I was astonished to see on GOOGLE my Table Tennis competition results from way back. Alas, keyed in "IAC" and no joy.
Regards

Hi, Simgrund -
Somebody has to have those IAC ballot numbers. Who was auditing the ballot? Why isn't the scrutinier insisting that WC release the vital information? Every folder in WC seems to be labeled SECRET, CONFIDENTIAL, UMBRA, SENSITIVE, CLASSIFIED or FOR YOUR EYES ONLY. That policy had better change very soon.

Perhaps the matter should be drawn to the attention of a Qeensland local member by a Queensland PIF investor.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Cookie 1 Thanks for following up on the AFR article. Duped, you are right about the banks killing off this type of investment. When we finally get some compensation via IMF we will all put the proceeds safely in the bank. Just like after the great depression the banks will be stronger and richer and more powerful than ever.

MARCOM

 

[simgrund]

Re: Octaviar MFS Premium Income Fund PIF

Hi, Simgrund -
Somebody has to have those IAC ballot numbers. Who was auditing the ballot? Why isn't the scrutinier insisting that WC release the vital information? Every folder in WC seems to be labeled SECRET, CONFIDENTIAL, UMBRA, SENSITIVE, CLASSIFIED or FOR YOUR EYES ONLY. That policy had better change very soon.

Perhaps the matter should be drawn to the attention of a Qeensland local member by a Queensland PIF investor.

This could be the path to take. Queenslanders; please volunteer!!!
And who was the SCRUTINEER?.
Is it too much to hope it was and is a person with impeccable neutrality and integrity?.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

This could be the path to take. Queenslanders; please volunteer!!!
And who was the SCRUTINEER?.
Is it too much to hope it was and is a person with impeccable neutrality and integrity?.

Simgrund I am sure we would have at least more than one PIF AG investor in Brisbane who could possibly make an appointment with WC to discuss the results of the IAG and ongoing PIF strategies. Hey, I actually made a special appointment (from WA) with WC to meet Jenny Hutson and make myself known and offer my support initially. I met with Jenny Hutson and Caroline Snow in 2008 and was assured the PIF was in good hands with their team of experts with a strategy in place to deliver on promises made by WC. ( why I was given personal business cards from both remains a mystery because the contact details are not exactly a foot in the door!!! ) OK, so now we are in a worse situation financially, investors are basically being ignored, unit value has diminished, legal cooperation with Class Action is questionable etc etc. We have not even had the courtesy from Wellington Capital and Jenny Hutson to deliver a 2009 Dec update as indicated. WC are obviously reluctant to provide any PIF relevant information or are deliberately avoiding the promised update I ask you all why? Seamisty

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

It's all history now, but this article from the Australian dated Oct. 08 is interesting to read.

---------------------------------

Wellington Capital to revamp frozen fund

* Fiona Cameron
* From: The Australian
* October 16, 2008 12:00AM


BOUTIQUE merchant bank Wellington Capital has won support yesterday for its plans to restructure the frozen $770 million Premium Income Fund.

The moves will allow PIF to begin trading on the National Stock Exchange, a secondary trading platform.

Unitholders cheered and clapped as Wellington managing director Jenny Hutson spelt out plans to rebuild the fund's fortunes and pay a 3c distribution before Christmas.

PIF's debt had been reduced from $200 million in January to $9.4 million now, Ms Hutson said, and it was on track to reach zero within a month.

"We were the first into this (financial) crisis, and we will be the first out of it," the former lawyer told the extraordinary general meeting of 410 unitholders at the Gold Coast Convention Centre.

PIF had offloaded assets earlier this year when business conditions were better than now, she said.

Wellington secured proxy votes from more than 90 per cent of unitholders in favour of the three resolutions it proposed yesterday, but there was also almost unanimous support in the show of hands at the meeting.

Unitholders agreed to change the fund's constitution, removing their rights to redeem units, which Ms Hutson said was a requirement for the fund to list on the NSX.

Yesterday investors voted in favour of allowing the redemption of 37.5 million units to allow some investors to exit the fund now.

Unitholders also approved a motion allowing Wellington Capital to take over from Wellington Investment Management as PIF's responsible entity. The resolutions would allow the listing on the NSX.

The meeting was adjourned last month after Justice Philip McMurdo agreed with the Australian Securities and Investments Commission and ruled that information Wellington had sent to unitholders was misleading and deceptive.

In the only slightly hostile question from the floor yesterday, one unitholder asked about the $700,000 in fees Wellington would be owed if it were removed as fund manager.

Ms Hutson said Wellington had been up against six other firms in seeking to manage PIF and its appointment was "a commercial transaction done on arm's-length terms".

She said Wellington envisaged restoring 45c in the dollar to unitholders in three to five years.

Under a liquidation scenario, unitholders would have received 14c, she said.

PIF was formerly part of the MFS Group, but like other entities in the group, extracted itself from the head stock after MFS (now renamed Octaviar) hit a financial crisis in January.

PIF is now one of Octaviar's five largest creditors -- being owed about $197.5 million -- and has appeared repeatedly in the Supreme Court of Queensland alongside the other major creditors, who are collectively owed more than $1 billion by the former high-flying tourism and funds management giant.

Neither MFS (Octaviar) nor any executives associated with the company currently held any PIF units, Ms Hutson said yesterday.

The fund had a $55 million exposure on a loan to the troubled Raptis Group.

In the current "hugely challenging" environment, PIF had taken possession of a number of properties over which it held mortgages.

"We are speaking to everyone on every asset," Ms Hutson said.

PIF had a value of $770 million at its peak but the value has since declined to about $400 million.

After yesterday's meeting, Gold Coast retiree Ian Grey, 74, said he was "very impressed" with Ms Hutson and her plans.

Mr Grey had about $40,000 invested in PIF.

Sid Waugh, 80, who had $140,000 in the fund, said he felt "very reassured" and had great confidence in Ms Hutson.

PIF had more than 10,000 investors with a $72,000 average holding.

---------------------------

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Hi All, I called the Wellington Hotline to enquire about the late Dec PIF update and was informed we may receive it in a couple of weeks. When I commented that it was late and was there any reason for the delay I was informed "No". Seamisty

 

[glendaw101]

Re: Octaviar MFS Premium Income Fund PIF

It's all history now, but this article from the Australian dated Oct. 08 is interesting to read.

Ms Hutson said Wellington envisaged restoring 45c in the dollar to unitholders in three to five years.

Under a liquidation scenario, unitholders would have received 14c, she said.

The units are currently trading on the NSX @ 14c.

We are so much better off with Ms Hutson at the helm aren't we! (sarcasm intended)

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

The units are currently trading on the NSX @ 14c.

We are so much better off with Ms Hutson at the helm aren't we! (sarcasm intended)

Make that 10 cents glendaw, a small parcel of 2,500 just went through at TEN CENTS!!!! Shame Shame Shame that some investors are so desperate for money they have to sacrifice their investment for such a pittance!! It is a total disgrace. Seamisty

 

[simgrund]

Re: Octaviar MFS Premium Income Fund PIF

Make that 10 cents glendaw, a small parcel of 2,500 just went through at TEN CENTS!!!! Shame Shame Shame that some investors are so desperate for money they have to sacrifice their investment for such a pittance!! It is a total disgrace. Seamisty

Keep your HOPES UP!
If these investors were on the IMF registry list, they will recoup some funds should Class Action succeed.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

The units are currently trading on the NSX @ 14c.

We are so much better off with Ms Hutson at the helm aren't we! (sarcasm intended)

Absolutely glendaw101. At 18 months since the Brisbane forum we're 1/2 of the way towards the 3 year mark. At over 20 months since WC took over management of the RE (when WC got the options to buy the RE) we're a 1/3 of the way towards the 5 year mark.

And which way is the fund value still heading WC? South isn't it? You're running out of time WC. And I still haven't heard anything about this mythical business plan WC have for growing the fund.

First King, then ASIC and now possibly also WC. All have failed me. It seems to me that overselling your capabilities is an essential trait for getting attention and hence getting ahead in the finance sector. Promise more than you can deliver. Like sprinters showboating. (Just imagine if you're surgeon or anaesthetist did the same. Or the mechnical engingeer or manufacturer of the brakes on your car or the wing of the next plane you fly in. And groups in the finance sector dare to lump themselves with such highly ethical businessmen and women by inappropriately branding themselves with label 'professionals'.)

Hope. That's what I had. Hope. Hope that WC were more ethical. (Rather than the far lower standard of being just legal.)

At best, WC failed to fathom the effect that MFS' mismanagement had on the realisable value of PIF. Including failing to forsee and/or plan for the assertiveness of the likes of the PTQ and Bond Street. And were we really ever in with a real chance of getting anything meaningful back from our unsecured loan in Sheraton Mirage. (When push comes to shove in business??? Thanks for that one Westpac.)

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Don't get angry...get litigious:

CORPORATIONS ACT 2001 - SECT 601MA
Civil liability of responsible entity to members

(1) A member of a registered scheme who suffers loss or damage because of conduct of the scheme's responsible entity that contravenes a provision of this Chapter may recover the amount of the loss or damage by action against the responsible entity whether or not the responsible entity has been convicted of an offence, or has had a civil penalty order made against it, in respect of the contravention.

(2) An action under subsection (1) must be begun within 6 years after the cause of action arises.

(3) This section does not affect any liability that a person has under other provisions of this Act or under other laws.

I'm hoping that JH does not manage to worm out of the class action as this could be used to mount a S601MA claim. I bet she will be pushing the "substantial compliance" argument at the directions hearing on 18 February. If you look at the lengths WIM has gone to resist the discovery of documents in the Bond Street Custodians case, it is clear that there was never an intention to fully support the class action with access to WC files and financial records.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Don't get angry...get litigious:

CORPORATIONS ACT 2001 - SECT 601MA
Civil liability of responsible entity to members

(1) A member of a registered scheme who suffers loss or damage because of conduct of the scheme's responsible entity that contravenes a provision of this Chapter may recover the amount of the loss or damage by action against the responsible entity whether or not the responsible entity has been convicted of an offence, or has had a civil penalty order made against it, in respect of the contravention.

(2) An action under subsection (1) must be begun within 6 years after the cause of action arises.

(3) This section does not affect any liability that a person has under other provisions of this Act or under other laws.

I'm hoping that JH does not manage to worm out of the class action as this could be used to mount a S601MA claim. I bet she will be pushing the "substantial compliance" argument at the directions hearing on 18 February. If you look at the lengths WIM has gone to resist the discovery of documents in the Bond Street Custodians case, it is clear that there was never an intention to fully support the class action with access to WC files and financial records.

I just hope JH is not as slow to pay her insurance premiums as she is to get investor updates out Marcom!!! Seamisty

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Don't get angry...get litigious:

...

I'm hoping that JH does not manage to worm out of the class action as this could be used to mount a S601MA claim. I bet she will be pushing the "substantial compliance" argument at the directions hearing on 18 February. If you look at the lengths WIM has gone to resist the discovery of documents in the Bond Street Custodians case, it is clear that there was never an intention to fully support the class action with access to WC files and financial records.

Marcom. A law firm I called wouldn't take on my case against my advisor. Their comment - not worth their while for damages less than $200K. I'll have to pay as I go.

As for Bond Street Custodians, the more road blocks WC throw up the better for PIF isn't it? (Provided cost and risk are evaluated and balance). If the the Bond Street At Call investors in PIF want to play hardball against us long term PIF investors (locked in for 6, 9, 12 and 24 months) then ... game on. Bond Street are harassing PIF. Think WC has got it's hands full with us ASF investors, what about Bond Street and it's 16M units?

Bond Street lodged a redemption with Wholesale PIF on 21 January 2008. Yep, that's THE day OCV trading on the ASX halted - forever on. A Monday. The Monday after Michael King's Friday teleconference during which the OCV price crashed, ending the day 69% down

Oh and don't forget that by that time PIF had breached it's loan covenants hadn't it? I find myself asking: did Hutchings hold the redemption door open just long enough for his bosses over at Avenue??

According to Crikey, both of OCV's Directors Michael Hiscock and Paul Manka were directors of Avenue Capital Management

From 2008 financial report of Avenue Capital Management's Avenue Retirement Service (Avenue Superannuation Plan RSE R1069020) (http://www.avenue.com.au/files/mpmacm_annual_report_0708.pdf):
"One investment impacted significantly by market volatility was the Wholesale Premium Income Fund. At 30 June 2008, the last price received was for 1st February 2008 valuing these investments at $12,274,998. Subsequent to year end a 1st August 2008 price has been received valuing these investments at $5,475,564. The value of the investments as at 30 June 2008 has been written down accordingly in these financial statements. On 16 October 2008, in respect of various interests including some owned by the Fund (7.845 million units), Bond Street Custodians Limited, who is the custodian of the assets of the Fund, commenced a legal proceeding in the Federal Court in Sydney against Wellington Investment Management Limited, the responsible entity for the Wholesale Premium Income Fund. The proceedings are in relation to a claim for damages arising out of the alleged failure on the part of the responsible entity to fulfil a redemption request for 16.254 million units which was lodged with the Wholesale Premium Income Fund on 21 January 2008. This was shortly prior to the suspension of redemptions. It is not possible at this stage to reliably estimate the likely outcome of the court action."

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

When WC took charge of PIF in 2008, I rated them a 5 out of 10. The mawkish roadshow didn’t convince me, but it seemed that despite too many promises having been made, surely some good would come out of the new management group.

After the October 08 promised distribution was not realised, my rating sank immediately to 2 (where it has sat too generously since then). Promises continued to be broken.

Now I rate the RE’s performance at 0/10.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

A bit of background info from the AFR July 2008::

Plan for PIF worth65$ in the dollar Mathew DunckleyWellington Capital's nation wide sales pitch to investors in the crippled Premium Income Fund is picking up momentum following another marathon meeting in Melbourne yesterday.The $775 million fund was formerly managed by MFS and has been in crisis since a run by panicked investors forced it to be frozen earlier this year.Wellington took over the fundfrom MFS in May and about 700 people packed into the Melbourne Convention Centre yesterday to hear the company's founder Jenny Hutson explain a plan that could take three to five years but boost returns to as much as 65$ in the dollar and perhaps more.If the fund was liquidated the return to unit holders would be just 14$ in the dollar, she said. More than 1000 investors areexpected to attend a meeting in Sydney today before the road show winds up on the Gold Coast on Thursday. Miss Hutson stressed her personal commitment to getting the best return possible. "I have put every thing on the line to stand before you today, I have put my reputation on the line,' ' she ,said. Adam Thorn, a founding member of the PIF Action Group, said he was encouraged by Ms Hutson's comments at the meeting which stretched for more than four hours."Her job was to sell herself to us today, a bit like a car salesman, and I think she did a good job of that,"he said."I think the majority would go with her three to five year plan.' 'Mr Thorn said Ms Hutson had agreed to look into the possibility of providing more information on PIF's portfolio of 37 loans. Ms Hutson did provide details on one further loan to reinforce her point about a rushed liquidation. She said a residential subdivision site was recently valued at $ 11million but when it was taken to the market the highest offer came in at just $1.1 million. Mr Thorn said he was also pleased Ms Hutson had agreed to consider the option of allowing investors to sell their units to other unit holders as an alternative way of providing liquidity as opposed to Wellington's proposal to list the fund on the National Stock Exchange. Ms Hutson had earlier defended the plan to list on the NSX saying there were some investors who needed cash for reasons that were "significant and quite serious".Wellington's Jenny Hutson says her reputation is on the line. ;;

Too bloody right Jenny Hutson of Wellington Capital Ltd, your reputation was on the line and the current status of said reputation is in tatters!! The longer PIF investors do not see a cent in return of their investment and a continuing decline in unit value and no sign of any PIF worthwhile strategy to take this fund foward, it will continue to deteriorate!! Not forgetting that because you have delivered nothing to date and rather than stand up and admit you cannot deliver and appear to have over estimated your ability to fullfill the promises made to investors originally, you appear to be missing in action along with our Dec 2009 PIF update. I sincerely hope that we have not been misled from day one with the original WC aquisition of the management rights to the PIF, bcause it is becoming blatantly obvious that we were misled as to what we should have received in comparison to what we voted for. If you are stalling with our promised update in the hope of delivering some good news, it would want to be pretty damn sensational to restore investor confidence. Waiting, Waiting, Waiting and patience has been tested to the max. Seamisty

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

http://www.goldcoast.com.au/article/2010/01/17/179445_gold-coast-business.html







Michael King opens up about MFS
Nick Nichols, business editor | January 17th, 2010



Michael King opened up to goldcoast.com.au's business editor Nick Nichols about the collapse of his company, MFS. Pic: Michael Ross.



IT WAS a pleasant spring day in Sydney in November 2006 when MFS founder Michael King received a jolt more life-changing than the demise of his business empire.

Mr King was walking through the city bustle from his Bent Street office to a meeting, alone but for the relentless hum of the corporate machine in his head.

Then he collapsed in an unconscious heap on the street.

It was only thanks to the kindness of a stranger that he soon was in an ambulance and swept away to the nearby Prince Alfred Hospital, where he remained in the cardiac care unit for a week.

Mr King's diagnosis was a potentially life-threatening blood clot -- a legacy of a life consumed by the unnatural pressure of billion-dollar deals.

Details of the incident were never made public, and for good reason.

Mr King, the driving force behind the then $4 billion financial services company MFS, was acutely aware that news of the health scare could have a devastating effect on his company's share price, which at the time was sitting comfortably above $4.


A year later, he would be helpless against the powerful forces that would lay siege to all that he had built.

Late in 2007, short sellers were on the scent of unbridled riches, picking the eyes out of a share market that was full of debt-laden balance sheets and drowning in a rising tide of fear.

The sub-prime crisis in the US was getting serious, sucking trillions of dollars out of the financial system worldwide.

Related Coverage
Michael King sheds more than money

The first domestic giant to feel the sting of the market's short sellers was Centro Properties in December 2007.

A month later, the short selling barbarians were at MFS's gates and the Gold Coast company had little more than a couple of hours' warning of their arrival.

On the morning of January 10, 2008, Mr King received a gut-churning call from an institutional broker who warned him that hedge funds were looking to 'short' his company to 'zero'.

While he declined to disclose the identity of the broker, Mr King said he took the threat seriously.

The alarm bells were triggered in earnest that morning when the trading volume of MFS shares exploded by more than five times the previous day to 11.6 million, pushing the share price below $4.

A second assault came the following day, January 11, with more than 15 million shares changing hands and the shares dropping to as low as $3.21.

"It was a problem, and it became a bigger problem as the days went on and as the implications of it grew wider," recalled Mr King in an exclusive interview with The Weekend Bulletin.

The falling share price that Friday -- January 11, 2008 -- triggered a margin call on then MFS director Michael Hiscock's shareholding, wiping out his personal stake in the company.

Apart from margin calls also hanging over Mr King and his business partner Phil Adams, the falling share price was also putting pressure on the group's tenuous debt position.

All options were placed on the table, with wealth manager UBS recommending MFS raise $550 million through a rights issue.

The funds would help repay $150 million in debt owed to Fortress Capital at the end of March 2008 as well as providing working capital to help the planned spin-off of tourism and travel group Stella into a separate company.

In hindsight, the advice was flawed -- largely due to its unfortunate timing.

In early 2008, any company that went cap in hand to investors seeking a cash injection was thought to be on the ropes, perhaps even suicidal.

Of course, Mr King didn't help matters when, two months earlier, he told the market MFS had no need to raise fresh capital.

It was little wonder then that short sellers were on a 'bet the house' winner that would eventually claim billions of dollars in investor funds as the company crashed and burned in less than an hour on the morning of January 18.

The fact that UBS was willing to support MFS by underwriting the new share issue was swept aside that Friday morning during a disastrous conference call to brokers and investors.

Mr King, who is a measured orator and is still regarded in the industry as one of Australia's foremost authorities on funds management law, uncharacteristically lost control of his audience that day, and possibly with good reason.

Mr King fronted brokers and analysts at the teleconference after he and his team spent three sleepless days putting together details of the $550 million issue with UBS.

"We basically worked 24-7 on that proposal," he said.

Mr King took the microphone on January 18 with his mind not as sharp as usual.

During a gruelling session of questioning, many peppered at him by Lehman Brothers analysts, the MFS share price went into a death spiral, falling from $3.18 to a close of 99c.

The short sellers made a killing.

If the Friday conference was tough, Mr King's weekend was not much better.

With his fortune gone and his company on the brink, Mr King began negotiating with six different parties who had lined up with their own brand of opportunism to secure MFS assets.

Among them was Macquarie Bank, which wanted to buy MFS's tourism company Stella Group, and Challenger Investments, which wanted to inject capital into MFS.

The ill-fated City Pacific also was in the mix, after a previously unsuccessful attempt at a merger with MFS.

The capital-raising proposal ultimately sounded the death knell for MFS, which, under its present guise as Octaviar, is in the throes of liquidation.

But advice from Macquarie Bank six months earlier was equally critical to its fate, showing that no one was anticipating the catastrophic events of 2008.

Macquarie compiled a 500-page report for MFS in which it recommended it should not sell Stella, a business which cost $2.2 billion to assemble.

It was advice MFS did not ignore.

In November 2007, it rejected a $1.7 billion offer from CVC Asia Pacific for Stella, only to be forced into a fire sale to the same raider in February 2008.

Mr King does not resile from his own errors of judgment.

One of them was his decision to quit as MFS chief executive during the weekend following the conference call.

GAfter emailing staff Saturday morning on January 19 that he would stay the distance, Mr King said he ultimately decided at 11.30pm the following Sunday night that the best course would be to relinquish his position.

It was doubtful that outcomes would have been much different had he remained in the chair.

But MFS and Michael King were inextricably linked.

Mr King built the company deal by deal, and there was no denying his departure put both internal management and institutional investors into a bigger panic than they had been the previous week.

He said the loss of confidence in the company was too much to overcome at a time when the world was on the brink of economic chaos.

"The people that owe you money don't want to pay you, and the people you owe money to want to be paid yesterday," he said.

"The deals you've got on the go that will grow your future profits disintegrate, and overnight you go from everything being sweet to it all being over.

"Whether anything changed between the Thursday and Friday didn't matter.

"It was a complete play into short sellers hands."

Mr King ultimately blames himself for not being better prepared for the rout.

"My job was to see all risk and manage all risk, even if that risk was fair or unfair."

"Not only did (short sellers) charge at a company, but even the fact that they might charge at a company was enough to scare everybody out of that company.

"Everyone in the game knew what was going on and if you thought they were going to target a company you had invested in, there was no point in hanging around."

Market analyst Charlie Green, formerly a long-time supporter of MFS, is probably the man who crystallised the collapse of MFS.

He's the one who called it 'all over' during the teleconference.

"I don't think you'll make Valentine's Day, Michael," Mr Green told Mr King at the time, and he was right.

He stunned market observers when he opened fire on Mr King that morning.

Normally it would have been the kind of conversation held behind closed doors.

Mr Green this week played down his role in the demise of MFS.

"I don't think it had anything to do with the conference call, but everything to do with MFS overpaying for assets," he said.

But there was no denying his effect on the share price on the day.

It also was the beginning of years of pain for the thousands of investors who were either shareholders in Octaviar or unitholders in any of its funds.

Although creditors are still squabbling over the $130 million in cash the company still holds, the good news is that all of Octaviar's businesses - Stella (now known as Mantra Group), GEO Property Group, Living and Leisure Australia and HFA Holdings - have made a new start.

Certainly, investors in these companies have a long way to go before they claw back their losses, as do unitholders in the Premium Income Fund.

Octaviar shareholders can only count on a tax write-off.

The pain of the past remains raw for some, while others have moved on.

Some may still blame Mr King for the devastating collapse, but others have taken it in their stride.

The body count across the Australian Stock Exchange in 2008 - including the likes of Allco Finance and ABC Learning Centres - made it clear we were all in exceptional times.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

http://www.goldcoast.com.au/article/2010/01/16/179455_news.html




Michael King sheds more than money
Nick Nichols, business editor | January 16th, 2010



The former high-flying executive has also shed the kilos.

Those who knew the old Michael King will notice a strikingly thinner man, yet one who still carries the weight of insurmountable debt on his shoulders.

Mr King has dropped 20kg thanks to a lifestyle that is far removed from the frenetic pace set during his tenure at MFS.

Despite his fall from grace, Mr King's extensive knowledge of funds management law and mergers and acquisitions has kept his skills in demand from lofty corporate quarters.


The consummate dealmaker probably struck the best agreement of his professional career with his creditors, including margin lenders.

His debt is about $127 million, held against dwindled assets of less than $20 million, and without the agreement he would have likely been bankrupted.

Under a personal insolvency agreement, the creditors to his private companies are selling his polo property Elysian Fields.

As part of the agreement, Mr King continues to pay back those creditors in instalments through a personal income consulting to a handful of clients, some of them international.

Most days he travels into Surfers Paradise to a modest rented office, from where he sends off emails and makes calls.


Apart from his debt commitments and a class-action claim, Mr King has to contend with ASIC, which is taking civil action against him and a raft of MFS's former directors.

The case centres on the transfer of $147 million from the Premium Income Fund to various other MFS entities at the end of 2007.

Mr King has denied any wrongdoing and to this day stands behind former MFS staff members and directors, whom he described as loyal and hardworking.

He told goldcoast.com.au that he was not the sort of person to hide away from responsibility.

"You can't run away from what was a big corporate failure," he said.

"A lot of issues have to be worked through and, like everything in life, you just have to take one step at a time and deal with it."

Mr King said he had no intention of moving away from Canungra -- where he still enjoys local support -- once Elysian Fields is sold.

Support also comes from the top end of town and in recent times he has been spotted 'deep in discussion' with business icon James Packer on his Hunter Valley property Ellerston.

Despite the fallout from the collapse of MFS, these days Mr King is an infinitely more relaxed man.

"The stress I've been subjected to in the past two years, to my way of thinking, would be 20 per cent of the stress I was subjected to when I was working with MFS, and that takes into account the media bashing me," he said.

"It (the pressure) doesn't even rate on the scale of the day-to-day running of (MFS)."

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

I hope ASIC reads the article - several admissions of non-disclosure that will help nail him.

And in relation to stealing from PIF -" Mr King has denied any wrongdoing and to this day stands behind former MFS staff members and directors, whom he described as loyal and hardworking." A different story to what he said at the first directions hearing where he wanted to know the full case ASIC has against him and he would consider not defending the case. Even the ASIC lawyers had to caution him over his legal rights!

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

'The pain of the past remains raw for some, while others have moved on.

Some may still blame Mr King for the devastating collapse, but others have taken it in their stride.':::

PIF investors should not be expected to take this in their stride, we should never have been placed in such a compromising position if the guidelines of the PIF had been adhered to and yes, the pain will remain raw until such times as the individuals who gambled with our money and lost are exposed and held accountable!! PIF holders have far too much at stake to let those responsible for our current situation to wallow in self pity and buck pass!! At least Mr King has not bunkered down and is in hiding or on a annual leave like our own RE, JENNY HUTSON of WELLINGTON CAPITAL who to date has not delivered our Dec 2009 PIF update!!
That does not mean you are off the hook Mr KING, , no, no , no!! Same as Ms Hutson, investors in the PIF will not give up until we ensure we have left no stone unturned and exhausted every avenue to expose those responsible for our current situation, especially since we appear to be billed for substantiall legal representation which to date has delivered nothing!!! Nothing!!!We can only hope PIF investors have been represented adequately with their best interests the main priority, if not then rest assured, the wheelchairs are oiled, hearing aids are finely tuned, walking sticks have been honed, and age, time and experience are of an advantage and complacency was left behind in 2008!!! We can't afford to move on!! Seamisty

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

The lateness in publishing the December 09 update speaks as a symbol of WC attitudes. To them, remoteness is a virtue, especially when the pressure is on. Don't good “generals” lead from the front?
The update might be delayed because:

1. There’s nobody around to sign important documents.

2. As Seamisty suggested, they are holding the information back in the hope of being able to publish a rare bit of good news. Conversely, they await more bad news.

3. The board can’t agree on the wording of the update.

4. The update has no priority on the board’s agenda.

Whatever the reason, we are owed an apology and explanation.