Wellington Capital PIF/Octaviar (MFS) PIF
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Some more on ALF......
Just recently, while cruising in Kensington, I spotted "Can Can Lingerie" sign on semingly disused premises; same side of Anzac Parade as pink emporium of Peter's of Kensington.
No bras dangling out of window sills. I wonder...
Just recently, while cruising in Kensington, I spotted "Can Can Lingerie" sign on semingly disused premises; same side of Anzac Parade as pink emporium of Peter's of Kensington.
No bras dangling out of window sills. I wonder...
Duped --Your devil’s advocacy makes for intreating reading. No doubt WC would try to blame the convenors of an EGM for causing “unnecessary disruption to their magnificent plans’, but I’m not so sure that many PIF investors would swallow the argument nowadays. The dynamics have changed greatly since those unctuous 2008 road shows. Investors are undoubtedly suffering considerable hardship. Every meeting carries risks, but without facing facts head-on nothing can ever be resolved. It’s worth reminding ourselves that 5000 PIF members have signed up for the CA...surely they aren’t happy with our RE.
By the way, Gurdgieff adherents would categorise us as “sleep walkers” mechanically following mundane daily routines without any intellectual acuity.
An EGM would also attract concomitant media activity.
By the way, Gurdgieff adherents would categorise us as “sleep walkers” mechanically following mundane daily routines without any intellectual acuity.
An EGM would also attract concomitant media activity.
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I'm all for WC having to explain their performance. But all the evidence I've seen to date suggests to me that an EGM as such wouldn't achieve much. (Having said that, given the $ I've lost already, the extra $100K cost to the fund will be worth it for the satisfaction of watching WC trying to explain itself.)
I can't see why joining the CA necessarily means that a unit holder is dissatisfied with WC.
As for this forum. When we had a show of hands on this thread we totalled under 2% of the fund. Nearly a third of the posts are from just selciper, seamisty and myself. And the 505,199 views til now, equates to less than a thousand people clicking to read every one of the 6121 posts. (Not a reliable measure I concede, but I'm sure that many thousands of the views are from me) The few of us here on this thread aren't the ones that need convincing.
On top of that, we haven't even had a single fellow investor go to a single day of the public hearings and report back to this thread.
I can't see why joining the CA necessarily means that a unit holder is dissatisfied with WC.
As for this forum. When we had a show of hands on this thread we totalled under 2% of the fund. Nearly a third of the posts are from just selciper, seamisty and myself. And the 505,199 views til now, equates to less than a thousand people clicking to read every one of the 6121 posts. (Not a reliable measure I concede, but I'm sure that many thousands of the views are from me) The few of us here on this thread aren't the ones that need convincing.
On top of that, we haven't even had a single fellow investor go to a single day of the public hearings and report back to this thread.
From The Age:
http://news.theage.com.au/breaking-...f-backdated-octaviar-docs-20100830-1473o.html
Court hears of backdated Octaviar docs
Jordan Chong
August 30, 2010 - 5:59PM
AAP
Octaviar Ltd had no culture of backdating documents, the co-founder of the failed Gold Coast-based company has told the NSW Supreme Court.
The Sydney court on Monday heard that shareholders' agreements relating to the selldown of an Octaviar subsidiary in New Zealand were supposedly signed on June 29, 2006.
But a copy of an email sent from chief financial officer David Anderson to co-founder Michael King on July 24, 2006, and read out in court, suggested the shareholders' agreements had yet to be signed.
Mr King told the court it was not the practice of the company to backdate documents.
"As far as I am aware, there was no process or culture of backdating documents," Mr King said in response to a question from barrister Adam Bell, SC, acting for the liquidator.
Mr King was appearing in court at the liquidator's examination of Octaviar, which was previously known as MFS and collapsed in 2008 owing about $2 billion to creditors.
The company was founded by Mr King and Phil Adams.
The selldown related to New Zealand-based MFS Pacific Finance, with MFS to sell 60 per cent of the company to so-called "friends and family", but retain management rights.
Liquidator Kate Barnet from Bentleys Corporate Recovery is trying to determine when the company became insolvent, with the focus on about $1 billion in inter-company transactions.
The court also heard that one MFS venture - Young Village Estates - was sold after facing negative publicity on television current affairs programs regarding the removal of elderly residents from existing aged care facilities.
Mr King said former MFS director and chief executive Craig White spent "a bit of time on A Current Affair getting bashed" and, as a result, it was decided not to proceed with the venture.
"We were better off selling this asset," Mr King said.
Bentleys has recovered about $145 million since being appointed liquidator in September 2009.
The examination before senior deputy registrar Andrew Musgrave continues on Tuesday, with Mr King to be questioned further.
Former director Rolf Krecklenberg is scheduled to appear on Thursday and Friday.
http://news.theage.com.au/breaking-...f-backdated-octaviar-docs-20100830-1473o.html
Court hears of backdated Octaviar docs
Jordan Chong
August 30, 2010 - 5:59PM
AAP
Octaviar Ltd had no culture of backdating documents, the co-founder of the failed Gold Coast-based company has told the NSW Supreme Court.
The Sydney court on Monday heard that shareholders' agreements relating to the selldown of an Octaviar subsidiary in New Zealand were supposedly signed on June 29, 2006.
But a copy of an email sent from chief financial officer David Anderson to co-founder Michael King on July 24, 2006, and read out in court, suggested the shareholders' agreements had yet to be signed.
Mr King told the court it was not the practice of the company to backdate documents.
"As far as I am aware, there was no process or culture of backdating documents," Mr King said in response to a question from barrister Adam Bell, SC, acting for the liquidator.
Mr King was appearing in court at the liquidator's examination of Octaviar, which was previously known as MFS and collapsed in 2008 owing about $2 billion to creditors.
The company was founded by Mr King and Phil Adams.
The selldown related to New Zealand-based MFS Pacific Finance, with MFS to sell 60 per cent of the company to so-called "friends and family", but retain management rights.
Liquidator Kate Barnet from Bentleys Corporate Recovery is trying to determine when the company became insolvent, with the focus on about $1 billion in inter-company transactions.
The court also heard that one MFS venture - Young Village Estates - was sold after facing negative publicity on television current affairs programs regarding the removal of elderly residents from existing aged care facilities.
Mr King said former MFS director and chief executive Craig White spent "a bit of time on A Current Affair getting bashed" and, as a result, it was decided not to proceed with the venture.
"We were better off selling this asset," Mr King said.
Bentleys has recovered about $145 million since being appointed liquidator in September 2009.
The examination before senior deputy registrar Andrew Musgrave continues on Tuesday, with Mr King to be questioned further.
Former director Rolf Krecklenberg is scheduled to appear on Thursday and Friday.
Fallen King 'very sorry' for investors hurt in $2.5b MFS collapse
Anthony Marx From: The Courier-Mail August 31, 2010 12:01AM
FALLEN Gold Coast businessman Michael King has apologised to investors stung by the $2.5 billion collapse of his Octaviar finance and tourism group two years ago.
"I'm very, very sorry they lost money," King said before entering the NSW Supreme Court in Sydney yesterday for the first day of a public examination by the liquidator of his failed company, formerly known as MFS.
Asked inside the courtroom to described his occupation, he said simply: "Insolvent, under administration, adviser."
Full story::http://www.couriermail.com.au/busin...25b-mfs-collapse/story-e6freqmx-1225912078438
Anthony Marx From: The Courier-Mail August 31, 2010 12:01AM
FALLEN Gold Coast businessman Michael King has apologised to investors stung by the $2.5 billion collapse of his Octaviar finance and tourism group two years ago.
"I'm very, very sorry they lost money," King said before entering the NSW Supreme Court in Sydney yesterday for the first day of a public examination by the liquidator of his failed company, formerly known as MFS.
Asked inside the courtroom to described his occupation, he said simply: "Insolvent, under administration, adviser."
Full story::http://www.couriermail.com.au/busin...25b-mfs-collapse/story-e6freqmx-1225912078438
Road to MFS investor hell was paved with good intentions
Kate Lahey
August 31, 2010
EXECUTIVES at the failed financial services group MFS thought they were doing a noble and potentially profitable thing in trying to convert ''dowdy retirement villages'' into nursing homes for disabled young people, the NSW Supreme Court has heard.
But the good deed hit a snag when current affairs programs ran stories about the company trying to kick old people out of their beds, and the finance group abandoned its plan.
Under examination by liquidators yesterday, the former chief executive and co-founder of MFS, Michael King, pictured, was asked about an MFS subsidiary, Young Village Estates, and its investments in 2007.
http://www.theage.com.au/business/r...aved-with-good-intentions-20100830-147bc.html
Kate Lahey
August 31, 2010
EXECUTIVES at the failed financial services group MFS thought they were doing a noble and potentially profitable thing in trying to convert ''dowdy retirement villages'' into nursing homes for disabled young people, the NSW Supreme Court has heard.
But the good deed hit a snag when current affairs programs ran stories about the company trying to kick old people out of their beds, and the finance group abandoned its plan.
Under examination by liquidators yesterday, the former chief executive and co-founder of MFS, Michael King, pictured, was asked about an MFS subsidiary, Young Village Estates, and its investments in 2007.
http://www.theage.com.au/business/r...aved-with-good-intentions-20100830-147bc.html
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When they say "Bentleys has recovered $145M, who is getting that, and when?
No PIF update = nothing postive to report? Amazing how quickly the last update hit the NSX when ALF PIF launched their takeover. Oh well, Wellington Capital running consistant to previous form.
The public exanmination media reporting appears to have stepped up its performance now King is in the docks!!
Lets not forget M King was in England not on business but playing polo while his empire in Australia was unravelling!!!
07/11/2007 Warwickshire Cup
Cirencester Park Polo Club, England
WPT Cup Elysian Fields
Michael King
James Beim
Jose Donoso
Marcos di Paola
Seamisty
Octaviar founder 'ballistic' at CVC head Jordan Chong
August 31, 2010 - 6:19PM
The co-founder of the failed Octaviar Ltd, Michael King, went "ballistic" at the Australian head of private equity firm CVC Asia Pacific after the proposed sale of tourism business Stella hit difficulties, a court has heard.
Mr King was appearing in court on Tuesday at the liquidator's examination of Octaviar.
Full story:: http://news.smh.com.au/breaking-new...der-ballistic-at-cvc-head-20100831-14fcr.html
The public exanmination media reporting appears to have stepped up its performance now King is in the docks!!
Lets not forget M King was in England not on business but playing polo while his empire in Australia was unravelling!!!
07/11/2007 Warwickshire Cup
Cirencester Park Polo Club, England
WPT Cup Elysian Fields
Michael King
James Beim
Jose Donoso
Marcos di Paola
Seamisty
Octaviar founder 'ballistic' at CVC head Jordan Chong
August 31, 2010 - 6:19PM
The co-founder of the failed Octaviar Ltd, Michael King, went "ballistic" at the Australian head of private equity firm CVC Asia Pacific after the proposed sale of tourism business Stella hit difficulties, a court has heard.
Mr King was appearing in court on Tuesday at the liquidator's examination of Octaviar.
Full story:: http://news.smh.com.au/breaking-new...der-ballistic-at-cvc-head-20100831-14fcr.html
Listing for Brisbane Supreme Court tomorrow::
COMMERCIAL LIST
GREIG & another -V- OCTAVIAR LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & another
Justice Philip McMurdo
Court 16
Floor 3 11.15 AM
(Application)
OCTAVIAR LIMITED & others
Justice Philip McMurdo
Court 16
Floor 3 11.15 AM
(Application)
COMMERCIAL LIST
GREIG & another -V- OCTAVIAR LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & another
Justice Philip McMurdo
Court 16
Floor 3 11.15 AM
(Application)
OCTAVIAR LIMITED & others
Justice Philip McMurdo
Court 16
Floor 3 11.15 AM
(Application)
MFS looked to buy as it struggled with cashflow
Teresa Ooi From: The Australian September 01, 2010 12:00AM
MFS pushed ahead with plans to buy a British financial company, despite knowing MFS was struggling with cashflow.
Former chief executive and co-founder of the failed property group Michael King told the NSW Supreme Court yesterday that he had conducted due diligence on the financial services company when he "knew MFS did not have the funds to buy the asset", but the deal fell through.
Under cross examination by Adam Bell SC on behalf of MFS liquidator Bentleys Corporate Recovery, Mr King said he could not recall when he became aware that MFS could not access revenue from the group's Stella travel business because of a cash lock-up.
"I do not recall getting legal advice from MFS on Stella's cash lock-up," Mr King said.
"At different points of time, the cash can be used in a certain way. I concede that the ability to use the cash from Stella was restricted."
Full Story:::http://www.theaustralian.com.au/bus...ed-with-cashflow/story-e6frg8zx-1225912532967
Teresa Ooi From: The Australian September 01, 2010 12:00AM
MFS pushed ahead with plans to buy a British financial company, despite knowing MFS was struggling with cashflow.
Former chief executive and co-founder of the failed property group Michael King told the NSW Supreme Court yesterday that he had conducted due diligence on the financial services company when he "knew MFS did not have the funds to buy the asset", but the deal fell through.
Under cross examination by Adam Bell SC on behalf of MFS liquidator Bentleys Corporate Recovery, Mr King said he could not recall when he became aware that MFS could not access revenue from the group's Stella travel business because of a cash lock-up.
"I do not recall getting legal advice from MFS on Stella's cash lock-up," Mr King said.
"At different points of time, the cash can be used in a certain way. I concede that the ability to use the cash from Stella was restricted."
Full Story:::http://www.theaustralian.com.au/bus...ed-with-cashflow/story-e6frg8zx-1225912532967
The banquet at MFS is over Scott Rochfort
September 1, 2010
The last drumstick appears to have been served from the consulting-fee feast enjoyed by the former MFS chief financial officer, David Anderson, from the carcass of the collapsed Gold Coast financial firm.
Anderson's private outfit, Business Puzzle Solutions Pty Ltd, pocketed about $1 million in consulting fees by helping the former administrator and liquidator of MFS, Deloitte, untangle the collapsed MFS puzzle.
The fees from that avenue dried up late last year after the new liquidator, Bentleys Corporate Recovery, took charge.
Now it appears another source of fees has finally run dry for Anderson.
On Monday McGrathNicol was appointed the new administrator of the investment vehicle owned in large part by several former MFS executives (MFS Alternative Asset), which in turn, owned a slice of the newly listed Aurora Funds.
MFS Alternative Asset still managed to rake in the fees until very recently. It held a 40 per cent stake in the fund manager Fortitude Capital, which was merged with Aurora.
Fortitude disclosed yesterday it paid $24,000 in consulting fees to Anderson's firm last financial year. It also paid out $858,000 in dividends in the period, of which 40 per cent or $343,200 would have been diverted to MFS Alternative Asset.
One wonders if any of this trickled down to Anderson, who purchased a 33 per cent stake in MFS Alternative Asset for an estimated $1. He quit as a director of Fortitude in July.
TWO CREDITORS
McGrathNicol was appointed administrator of MFS Alternative Asset following objections by the largest creditor, the former financing vehicle MFS Castle, which is now under the control of Bentleys.
Castle is owed $50 million from MFS Alternative Asset (as part of an old inter-company loan), despite rumours of an email being sent by MFS management forgiving the loan in the dying days of the Gold Coast firm.
Bentleys raised the perceived conflict of interest with Anderson, who is a director of MFS Alternative Asset, and appointed KordaMentha as the voluntary administrator a fortnight ago. This is because the only other creditor aside from Castle is Anderson, who is owed $2000.
September 1, 2010
The last drumstick appears to have been served from the consulting-fee feast enjoyed by the former MFS chief financial officer, David Anderson, from the carcass of the collapsed Gold Coast financial firm.
Anderson's private outfit, Business Puzzle Solutions Pty Ltd, pocketed about $1 million in consulting fees by helping the former administrator and liquidator of MFS, Deloitte, untangle the collapsed MFS puzzle.
The fees from that avenue dried up late last year after the new liquidator, Bentleys Corporate Recovery, took charge.
Now it appears another source of fees has finally run dry for Anderson.
On Monday McGrathNicol was appointed the new administrator of the investment vehicle owned in large part by several former MFS executives (MFS Alternative Asset), which in turn, owned a slice of the newly listed Aurora Funds.
MFS Alternative Asset still managed to rake in the fees until very recently. It held a 40 per cent stake in the fund manager Fortitude Capital, which was merged with Aurora.
Fortitude disclosed yesterday it paid $24,000 in consulting fees to Anderson's firm last financial year. It also paid out $858,000 in dividends in the period, of which 40 per cent or $343,200 would have been diverted to MFS Alternative Asset.
One wonders if any of this trickled down to Anderson, who purchased a 33 per cent stake in MFS Alternative Asset for an estimated $1. He quit as a director of Fortitude in July.
TWO CREDITORS
McGrathNicol was appointed administrator of MFS Alternative Asset following objections by the largest creditor, the former financing vehicle MFS Castle, which is now under the control of Bentleys.
Castle is owed $50 million from MFS Alternative Asset (as part of an old inter-company loan), despite rumours of an email being sent by MFS management forgiving the loan in the dying days of the Gold Coast firm.
Bentleys raised the perceived conflict of interest with Anderson, who is a director of MFS Alternative Asset, and appointed KordaMentha as the voluntary administrator a fortnight ago. This is because the only other creditor aside from Castle is Anderson, who is owed $2000.
Quote from http://money.ninemsn.com.au/article.aspx?id=7953971
'I remember standing on a street corner in England going ballistic at Ben Keeble on the phone," Mr King told the court.
He said news the sale process was under way was delivered to the market via a "deliberate leak" to the Australian Financial Review newspaper from UBS, which was Octaviar's provider of the financing package for the deal.
While financing arrangements had been settled, Mr King said former director and chief executive Craig White tried to extract a better deal by suggesting "another girlfriend" was in the picture and MFS could go to another bank.'
Well I assume the other "girlfriend" was RBOS!!! So while MFS was more than likely insolvent, Michael King was swanning around the world playing polo while all his loyal subjects were dilligently calling PIF investors encouraging them to reinvest in MFS PIF because the company was 'strong' and 'moving forward'!!! This was the same year Michael King awarded himself a $1.6million bonus for doing such a great job? Great job at manipulating figures and robbing our fund you *#@#hole! And as for all your loyal subjects, I hope they are not duplicating their prior MFS/Octaviar skills in new jobs on another raft of unsuspecting victims.
Are you actually sorry for your victims or for yourself Michael? If you were at all repentant I would have thought telling the truth would have been a good place to start, not now because you are forced to because the evidence prevents you from further coverups, but well over two and a half years ago when you could have made a difference to PIF investors at the very least!!
Seamisty
'I remember standing on a street corner in England going ballistic at Ben Keeble on the phone," Mr King told the court.
He said news the sale process was under way was delivered to the market via a "deliberate leak" to the Australian Financial Review newspaper from UBS, which was Octaviar's provider of the financing package for the deal.
While financing arrangements had been settled, Mr King said former director and chief executive Craig White tried to extract a better deal by suggesting "another girlfriend" was in the picture and MFS could go to another bank.'
Well I assume the other "girlfriend" was RBOS!!! So while MFS was more than likely insolvent, Michael King was swanning around the world playing polo while all his loyal subjects were dilligently calling PIF investors encouraging them to reinvest in MFS PIF because the company was 'strong' and 'moving forward'!!! This was the same year Michael King awarded himself a $1.6million bonus for doing such a great job? Great job at manipulating figures and robbing our fund you *#@#hole! And as for all your loyal subjects, I hope they are not duplicating their prior MFS/Octaviar skills in new jobs on another raft of unsuspecting victims.
Are you actually sorry for your victims or for yourself Michael? If you were at all repentant I would have thought telling the truth would have been a good place to start, not now because you are forced to because the evidence prevents you from further coverups, but well over two and a half years ago when you could have made a difference to PIF investors at the very least!!
Seamisty
It's interesting to note that last night's ABC six o'clock radio news didn't mention King's appearance at all. However, they found time to read an item about a man who had allegedly organised a 5 million dollar investment scam. For some odd reason the MFS scandal really doesn't get the media attention it warrants.
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IMLO. After paying for costs like Bentleys it'll be apportioned between the creditors. The MFS/Octaviar share holders will get nothing. (Although some share holders have an IMF funded class action afoot just like us)
How much each creditor will get will depend on when MFS/Octaviar became insolvent. If it's before ? January 2008 then Fortress has to pay some $ back and that $145m should go up by ... $55m? I recall. Fortress will then join us in the hand out queue. If it's later than ? January 2008 and Fortress wins the High Court case the $145m will reduce but Fortress will have been paid out.
My ignorant and really rough guess is we'll get about $20m. But we could get $30m. That sort of cash injection should put a rocket under the share price.
If MFS/Octaviar became insolvent before ? April/May 2007 then ... ????
How long? There are many parties with a lot at stake. Fortress will fight very hard and have many 10s of millions of $ at stake. I expect it'll be years still. And I'm guessing this won't exactly motivate any RE of PIF to wrap the fund up, i.e. all its open positions, promptly. (I.e. without new investors and/or profits, none of us are going anywhere except out through the NSX door or a final wrap party. And WC don't seem to have a very good track record at either attracting investors or making profits. IMLO)
This collapse of MFS/Octaviar is huge. It seems to have do not touch written all over it. I.e. if you pull at this little thread too hard then you don't know what fabric will come undone. Confidence in the Australian financial regulatory system could take a dangerous blow. And this confidence is what underpins the Commonwealth's 9% funded superannuation system as well as foreign investment. That's my gut feeling anyway.
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I posted too soon Mary
"This morning, the High Court unanimously rejected the appeal from the decision of the Queensland Court of Appeal and thus quashed the first instance decision in Octaviar which had thrown long-accepted practices into doubt. On a first reading, affected parties can now relax. Partners Diccon Loxton (view CV) and Andrew Boxall (view CV) and Lawyer Michael Wells report."
http://www.aar.com.au/pubs/baf/cubafsep10.htm?twitter=true
Whether Fortress cleans up is now down to the date of insolvency.
"This morning, the High Court unanimously rejected the appeal from the decision of the Queensland Court of Appeal and thus quashed the first instance decision in Octaviar which had thrown long-accepted practices into doubt. On a first reading, affected parties can now relax. Partners Diccon Loxton (view CV) and Andrew Boxall (view CV) and Lawyer Michael Wells report."
http://www.aar.com.au/pubs/baf/cubafsep10.htm?twitter=true
Whether Fortress cleans up is now down to the date of insolvency.
A little off topic, but interesting: "The role of a company chairman."
https://wiki.qut.edu.au/display/CPNS/Role+description+for+Chair+of+the+Board
https://wiki.qut.edu.au/display/CPNS/Role+description+for+Chair+of+the+Board
MFS King labels JPMorgan 'pretenders' Jordan Chong
September 1, 2010 - 6:14PM
'The co-founder and former chief executive of the failed Octaviar Ltd, Michael King, described JP Morgan as "pretenders" and "weak as piss" after the investment bank dithered over a potential capital raising, a court has heard.'
Full story::http://news.smh.com.au/breaking-new...abels-jpmorgan-pretenders-20100901-14nbo.html
September 1, 2010 - 6:14PM
'The co-founder and former chief executive of the failed Octaviar Ltd, Michael King, described JP Morgan as "pretenders" and "weak as piss" after the investment bank dithered over a potential capital raising, a court has heard.'
Full story::http://news.smh.com.au/breaking-new...abels-jpmorgan-pretenders-20100901-14nbo.html
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King tells of rock before MFS rolled
Anthony Marx From: Herald Sun September 02, 2010 12:01AM
Asked for the first time why MFS failed, Mr King said the company reversed course after he resigned in January 2008 and sold 65 per cent of its $2 billion Stella tourism assets at a firesale price to private equity group CVC.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
He said MFS should have kept Stella, gone ahead with a capital raising and cut its debt to Fortress Credit and UBS.
"What killed it was the adoption of a strategy that didn't work," Mr King said.
With short-sellers driving down the stock price, MFS shares collapsed and were frozen at 99 on January 18, 2008, after the market savaged Mr King's proposal for a $550 million capital raising.
Mr King revealed yesterday in court that he had been given advice just three days earlier from UBS to seek $750 million from the market.
Earlier, lawyer Adam Bell, on behalf of the liquidator, told the court that MFS had sought to pay off the $100 million debt by raiding one of its related entities, the Premium Income Fund (PIF), without board meetings, proper documentation and other required steps.
PIF had to secure a $150 million loan from the Royal Bank of Scotland to make the payment to Fortress, which had lent a total of $250 million. PIF also was raided for $17.5 million to pay money owed to investors in MFS Pacific Finance, the court heard.
Full Story:http://www.heraldsun.com.au/busines...efore-mfs-rolled/story-e6frfh4f-1225913017263
Similar articles:
http://www.smh.com.au/business/livi...e-in-the-wind-20100901-14nob.html?from=smh_sb
http://www.heraldsun.com.au/busines...efore-mfs-rolled/story-e6frfh4f-1225913017263
http://www.theaustralian.com.au/bus...rom-stella-group/story-e6frg8zx-1225913007646
Anthony Marx From: Herald Sun September 02, 2010 12:01AM
Asked for the first time why MFS failed, Mr King said the company reversed course after he resigned in January 2008 and sold 65 per cent of its $2 billion Stella tourism assets at a firesale price to private equity group CVC.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
He said MFS should have kept Stella, gone ahead with a capital raising and cut its debt to Fortress Credit and UBS.
"What killed it was the adoption of a strategy that didn't work," Mr King said.
With short-sellers driving down the stock price, MFS shares collapsed and were frozen at 99 on January 18, 2008, after the market savaged Mr King's proposal for a $550 million capital raising.
Mr King revealed yesterday in court that he had been given advice just three days earlier from UBS to seek $750 million from the market.
Earlier, lawyer Adam Bell, on behalf of the liquidator, told the court that MFS had sought to pay off the $100 million debt by raiding one of its related entities, the Premium Income Fund (PIF), without board meetings, proper documentation and other required steps.
PIF had to secure a $150 million loan from the Royal Bank of Scotland to make the payment to Fortress, which had lent a total of $250 million. PIF also was raided for $17.5 million to pay money owed to investors in MFS Pacific Finance, the court heard.
Full Story:http://www.heraldsun.com.au/busines...efore-mfs-rolled/story-e6frfh4f-1225913017263
Similar articles:
http://www.smh.com.au/business/livi...e-in-the-wind-20100901-14nob.html?from=smh_sb
http://www.heraldsun.com.au/busines...efore-mfs-rolled/story-e6frfh4f-1225913017263
http://www.theaustralian.com.au/bus...rom-stella-group/story-e6frg8zx-1225913007646
