Australian (ASX) Stock Market Forum

Wellington Capital PIF/Octaviar (MFS) PIF

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I'm getting a 404 Error Message every time I try the NSX PIN announcements. As they say, nothing is ever easy when it comes to WC operations.
 
JohnH said:
Wow!!! We're going to get 1 cent per unit!!!!

http://www.nsxa.com.au/ftp/news/021723203.PDF
Click to expand...

1] WC promised 3c

This would mean that WC can't receive fees yet till the 3c fully paid

I note that the monies for the 1c payment also comes in part from the Port MacQuarie units sale

2] and what sort of convoluted restructure has happen with the Wollongong Hotel / Appartment deal ? http://www.nsxa.com.au/ftp/news/021723199.PDF

As part of these new arrangements, Harbour Street Development Pty Ltd has entered into an agreement with a new company operated by the developer, Harbour Street Development Operations Pty Ltd to run the hotel.
Constellation Group have entered into an agreement to manage the hotel for a period of 5 years, with a 5 year option. The hotel is now leased by Harbour Street Development Pty Ltd for $1.2 million per year plus outgoings.

Did Harbour Street have trouble finding the money to pay the PIF?
 
1] Did you note the interesting "Supplementary" addition to the Financial Report:
The Top Ten PIF Investor List:

1. Perpetual Nominees Ltd <Wholesale Premium Income Fund> 41,114,196 5.02

2. IOOF Investment Management Ltd <IOOF Portfolio Service> 16,902,638 2.24

3. Equity Trustees Ltd <Accumulation Account> 4,000,000 0.53

4. Equity Trustees Ltd <Allocated Pension Account> 4,000,000 0.53

5. Mercedes Holdings Pty Ltd > 3,631,444 0.48

6. ANZ Nominees Limited > 2,949,934 0.39

7. Max Investments (Aust) Pty Ltd > 2,591,872 0.34

8. Gross S & T Pty Ltd <S & T Gross Superannuation Fund> 2,500,000 0.33

9. Mansted Enterprises Pty Ltd <Mansted Enterprises S/F A/C> 2,180,000 0.29

10. Labation Pty Ltd > 2,078,488

It is comforting to note that some of the above investors are loyal members of our PIF Action Group - the AG thanks you for your ongoing support!

2] Any other PIF investors wishing to join the PIF Action Group please contact us on our email: pifactiongroup@gmail.com
We currently have over 900 PIF investors as members

3] This, of course, would mean that none of the top 10 investors took up the ALF PIF offer in full
 
JohnH said:
Although Breaker, remember ALF obtained these for nothing and a speculative promise, and will now pick up over $20k's worth of 1 cents!!

Does that mean the $1600 company is now worth $21,600???
Click to expand...

If that was the real plan, then the dissapointing 0.27% Offer result won't even get anywhere near paying ALF's costs to run the Offer
 
http://www.theaustralian.com.au/bus...cial-to-mfs-debt/story-e6frg8zx-1225922940444

MARK Korda of KordaMentha said his main concern in MFS's financial problems was to ensure the sale of the Stella tourism group went through.

He said yesterday that if MFS went into voluntary administration before selling Stella then the value of Stella would be zero.

"If MFS was put into voluntary administration, then Stella would collapse within a day or two," Mr Korda said.

Corporate recovery adviser KordaMentha was appointed by the MFS board in January 2008 to deal with MFS's solvency issues.

The firm had consistently maintained that MFS was solvent because it had sufficient assets to pay off its liabilities.

Mr Korda said MFS remained solvent as long as it could pay its debts when they were due or when a standstill of loan repayments could be renegotiated with major creditors.

This included the payment of a $50 million tax bill that he said could be paid at a later date by negotiating with tax authorities.

Mr Korda was under examination by Adam Bell SC, on behalf of MFS liquidator Bentleys Corporate Recovery, to determine when MFS, now known as Octaviar, became insolvent owing creditors $2.5 billion.

He said he was not too concerned about certain irregular transactions involving MFS and Premium Income Fund that might have been in breach of disclosure rules. "You have to draw a line in the sand against these transactions," he said. "The past is the past and would need to be investigated and put on the back burner, while we had to deal with the real issues of the Stella sale."

He said the main motivation of the Stella deal was to get the buyer CVC over the line. This would help MFS repay its debt of $250m with US lender Fortress Credit.

The hearing continues.
 
Hi All, I haven't abandoned you but have limited computer access for a short time and haven't had time to reply to all your emails so am using the forum to let you all know I will be fulling functional again next week hopefully. Lots happenning, no surprises from the latest round of WC NSX releases, no amount of WC bullsh1t spin will alter the fact that they have demonstrated ongoing incompetence.From my own personal dealings with senior WC management, I have been lied to and misled on more than one occassion!! Periodic Discussions??? I am still waiting from the start of the year when they were offered and can't even get a response from WC in relation to the offer, any wonder most investors think so little of our RE, not to mention ASIC etc. Anyway thanks to all for contributing and keeping the forum updated. Cheers, Seamisty
 
Cookie1 said:
http://www.theaustralian.com.au/bus...cial-to-mfs-debt/story-e6frg8zx-1225922940444

... Mr Korda ... said he was not too concerned about certain irregular transactions involving MFS and Premium Income Fund that might have been in breach of disclosure rules. "You have to draw a line in the sand against these transactions," he said. "The past is the past and would need to be investigated and put on the back burner, while we had to deal with the real issues of the Stella sale." ...
Click to expand...

Hmmm. So what Mark Korda seems to be saying is that when making solvency calculations you can just ignore potential lawsuits from laws that you have broken or contracts you have breached. Really? I'd like to see Freehills advice on that. Look on the bright side. At least he's admitting he knew of these irregular transactions. He can't use the 'I can't recall knowing at the time' defense now.

Colin Kruger in his article http://www.businessday.com.au/business/korda-defends-mfs-solvency-call-20100914-15avt.html

"MFS's claim to solvency was at that point based on the expectation that it would get agreement from five major creditors on a debt standstill and debt forgiveness."

Hmmm. Isn't that the purpose of Administration and a DOCA? If Kruger's reporting is accurate then it seems to me that Freehills and Mark Korda are pushing the laws so far that they overlap somewhat.
 
Agree Duped


That is one of the most reprehensible statements I have ever heard in this whole disgraceful affair .

This creature ( Korda)is beyond contempt, it appears he is actually stating that he knew about the pilfering of 147.5 million dollars from the Premium income fund to unlawfully pay out the dividends and debts of Octavier and considered it irrelevant to the issue of solvency of the parent company .

Since when is a company solvent if it has to resort
to common theft ?. Why was ASIC not informed?

Well Korda Mentha rely on the hypothetical, ‘a la Jeffrey Robertson’ The forgivness of debt , the sale of distressed assets and the hope that a crime will nor be exposed.

As long as something may happen, its perfectly ok
In this guys warped brain.

Well Mr Korda, why don’t you try to ask one of the members of the Premium Income Fund (95% who are over the age of 65)and who have lost their life savings wether or not that is acceptable.

Duped if you paid a solicitor enough you could get some sort of legal opinion that the Earth is flat .

BTW , Freehills just happen to be one of the direct recipients of many millions of dollars paid directly to them from the monies unlawfully stolen from our fund .
 
Cookie1 said:
http://www.theaustralian.com.au/bus...cial-to-mfs-debt/story-e6frg8zx-1225922940444

MARK Korda of KordaMentha said ...........................
..........................."The past is the past and would need to be investigated and put on the back burner, while we had to deal with the real issues of the Stella sale."
He said the main motivation of the Stella deal was to get the buyer CVC over the line. This would help MFS repay its debt of $250m with US lender Fortress Credit.
The hearing continues.
Click to expand...

So back to Stella sale, I heard Rolf Krecklenberg mention a number of issues during his examination stint on 2 September in Darlinghurst Courts.
The examination chapter was open on a buyer (Global Voyager P/L) vendor (MFS) page.
He stated that the only way stability could be had, was by sale of Stella business. When asked "Could you consider other solutions such as putting MFS into voluntary administration?" he said he abstained from decision which, as per minutes of 1 Feb 2008, the Board went ahead with.
Reason for abstention: - "Declaration of Interest"
Having resigned from MD position with MFS sometime on 23 February '08, becomes Director, Global Voyager P/L. on 2 May 08.
Convenient transition and with clean conscience, as had been virtuous by declaring his interest.
Mind you, unitholders had not a whiff of it.
Resigns that one 23 December 08 by virtue of "contract termination". Said "No" to question if there were any disputes to cause this "termination".
Then these interesting guts of the sale:
GV P/L to get 100% shares + adjustments = $615 mil
$400 mil in cash, the rest by issuing shares to itself.

As we now know; this fell through, GV eventually brought proceedings against Octaviar for their MFS claims, etc, etc,

Yes, it is all surfacing now. With Managing Directors like these getting past ASIC's guard coops, we and our children may continue to bleed for a long time yet.
 
I just about choked when I read the Korda comment about drawing a line in the sand.

The money was pulled out of PIF to pay for worthless assets. Something that looks like, smells like, tastes like dog p--p is dog p--p and along the same lines this smells, looks etc so much like fraud then surely to sign off that a company is solvent while ignoring the activities relating to PIF and their legality is absurb to say the least.

As to the accounts what is the amount payable of close to $6 million. These accounts I am sure meets account standards but a lot of detail is missing.

Sitting on 12 million in cash as at 30 June 2010.
 
From outside the box:

I still think you'd all be better off having a meeting to take the $8m "getting the boot bonus" out of the constitution and consider getting a new manager after that.

No manager will give a hoot unless it comes under investor pressure.

Investors have to act.


..
 
Yep. These faceless men in the corporate professions wield much power. Casting the shape of the laws set by our democratically elected legislature in a from that suits their paying clients. Criticising the judiciary for legislating from the bench while campaiging for behind closed chambers' doors. And now we have a law firm listed on the ASX. I fear things are going to become a lot worse before they get better.
 
MFS inquiry hears evidence of implosion
Colin Kruger
September 16, 2010

THE insolvency specialist Mark Korda told a public examination of the collapse of MFS yesterday that the decision to appoint Jenny Hutson's Wellington Capital as the manager of the Premium Income Fund was the ''lesser of all the evils we could have done''.

Ms Hutson was acting as an adviser to the MFS board at that time, raising doubts it was an arms-length transaction.

''At the time of the transaction I don't think they were independent,'' Mr Korda said yesterday.

Full story in The Age: http://www.theage.com.au/business/mfs-inquiry-hears-evidence-of-implosion-20100915-15con.html

If JH was the "lesser of all the evils", I wonder what the other evils were? You couldn't get much more evil than the situation we find ourselves in today.
 
Have had a look through WC's surge of announcements. Blah blah blah .... all very nice sounding. 'Marketing campaign', 'working on all properties all the time' and 'asset valuations' are all good things to report but ... where are the sales.

High valuations = No sales = Higher fee for WC.

And with an NSX price around 7c. We're all locked in.

In today's Nick Nichols contribution Hutson is quoted as saying "Our accounts today show our net assets have remained constant since December 31, which we're very pleased about,"

I BET SHE IS.

High valuations = No sales = Higher fee for WC.

http://www.goldcoast.com.au/article/2010/09/16/255845_gold-coast-business.html

But what about some sales so we can get our money back.

I'm watching for the rush of sales in a couple of years once WC gets a couple of those ~$2m pa fees in the bag. WC's words like GFC and tough environment will change to 'new normal' or 'new paradigm' along with some big writedowns. Meanwhile Hutson is off doing other stuff like G* Eduction. What dya reckon?

An NSX broker said to me that WC will do good but will expect to be paid accordingly. I'd say the court is still hearing evidence on that.
 
Article in The Australian today http://www.theaustralian.com.au/bus...ds-mfs-decisions/story-e6frg8zx-1225924282890

Mark Korda defends MFS decisions
Teresa Ooi From: The Australian September 16, 2010 12:00AM

CORPORATE recovery adviser KordaMentha has continued to advise MFS directors that the company was solvent.

This, despite MFS facing demands for $673.5 million worth of loan repayments from five major creditors.

Between March and June 2008, MFS faced statutory demands to pay up loans including $56m from the Australian Taxation Office, $330m from MFS Pacific Finance, $40m from National Australia Bank, $100m from Challenger and $147.5m from Wellington Investment Management.

But co-founder of KordaMentha, Mark Korda said he had a "reasonable prospect of reaching an accommodation with creditors" to delay the loan payments.

"At the end of the day, you had to negotiate a standstill arrangement on the loan repayments with the major five creditors and we did," Mr Korda told the NSW Supreme Court yesterday.

Mr Korda spent the second day on the stand under a public examination by Adam Bell, SC, on behalf of MFS liquidator Kate Barnet of Bentleys Corporate Recovery to determine when MFS, now known as Octaviar, became insolvent owing creditors $2.5bn.

When Mr Bell asked Mr Korda why he did not take a more prudent approach when MFS faced the prospect of repaying such hefty loans, Mr Korda replied: "A number of creditors wanted the option of MFS not going into liquidation because they could get a better return from their loans in the long run."

Mr Bell alleged that, leading up to the collapse of MFS, senior management was "involved in misappropriation of funds and unlawful conduct".

But Mr Korda responded: "You have to draw a line in the sand to sort out these issues. We are where we are, and it was just one issue."

Mr Korda will continue his testimony today.
 

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