Wellington Capital PIF/Octaviar (MFS) PIF

[breaker1]

Octaviar MFS Premuim Income Fund PIF

The Octaviar MFS PIF and plans to sell the investment management arm of the corporation"
"Cash Enhanced Fund"
"Premium Income Fund"
"Wholesale Premium Income Fund"
"Dynamic Growth Equity "

(in recent company announcements) to Wellington Capital, an investment firm with evident links to Mr Scott.

The takeover of Mr Scott was further aided by the new ‘independent’ chairman Paul Manka, and new board-member Jenny Hutson, who also happens to be the managing director of Wellington Capital.

Mr Manka noted that “The board has recognised that it is not in the best interests of creditors, shareholders and other company stakeholders for Octaviar IM to remain a wholly owned subsidiary.”

Ms Hutson has forecasted a final purchase price to be ‘north of $20 million,’ which is a depressing prospect following the value of Octaviar at $1.33 billion when rival City Pacific proposed a merger in January.

The transaction with Wellington is completely legitimate, according to Ms Hutson, and will merely allow Wellington to earn management fees from the funds.

She also claimed her intention was to pursue the $50 million debt from Octaviar, and the $67 million owed by MFS Living and Leisure to the Premium Income Fund.

Ms Hutson made no excuses, recognising that “Our interests are quite different to the people in the Octaviar group.”

In 2006, Mr Scott inherited a large shareholding in Octaviar through the sale of his listed leisure business S8.

The coup may be complete, but Ms Hutson still claims that there is nothing untoward in the recent changes to Octaviar. She noted that Mr Scott was no longer a director, nor a shareholder, of Wellington Capital.

My concerns are: Is it legal for Octaviar Ltd to sell their investment arms (PIF, WPIF, etc) to Wellington Capital?
Who is Wellington Capital and what rights do they have to cheap assignment of the management rights of the investment arms of Octaviar?
I am just a bit confused, are they selling just the management rights or the assets as well to Wellington capital? If just the management rights, then who ownes the assets that investors have plowed $770 million into? If Chris Scott is associated with Wellington Capital via his old mate Ms Hutson, is there a possibility of collusion to somehow eventually sell the assets of the Investments Management Arm (PIF, WPIF, etc) at fire sale rates to Chris Scott/Wellington Capital and any colluding associates at fire sale rates, therefor leaving investors at only getting back cents in the dollar instead of their full investment (colluding buyers of OUR assets making a killing in the sale of OUR assets)? Why hasn't Octaviar PIF and WPIF managers organised a general meeting of investors to discuss these serious matters?

PIF / WPIF investors are hanging on to for dear life, for an orderly and transparent liquidation with the possibilty of some real return in their investment dollar!! (Why are Octaviar and Wellington Capital pretending that the investment arms are going to be a going concern - who would invest in them now? Chris Scott is the 3rd CEO and apparently is only interested in the sharemarket listed side of Octaviar MFS (as he hold many shares there) and seems to be doing his darndest to dispose of the investment arms of Octaviar.

I am further perplexed that the Royal Bank of Scotland has been given such a strong controlling hand in stopping the PIF from paying monthly interest. The PIF may owe $184 million (shock, horror, why weren't we told earlier) to the RBOS, but legally does that mean the PIF has to obey their request to stop interest? Could the Royal Bank of Scotland be a colluding entity with Octaviar/Wellington Capital to stealthily purchase OUR assets at rock bottom prices?

Investors have about $770 million invested in the PIF, what are the PIF / WPIF assets actually worth now, individually and what would they realistically realise in the event of a receiver liquidating assets?

I am hoping that this thread may lead to many responses from Octaviar PIF / WPIF / Cash Enhanced Fund / Dynamic Growth Equity investors. A forum has to be started somewhere for those investors feeling helpless and disenfranchised!! Lets hear from you!!

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

The Premium Income Fund yesterday sold its 9.4 per cent of Geo Property Group, the former MFS Diversified, to listed investment company Trojan Equity for $10.22 million.

At 25.5 a share, this represents a significant discount to Geo's closing price yesterday of 39 cents.

Buyer Trojan Capital is chaired by Andrew Kemp.

Both sat on the board of Chris Scott's S8 group before it was sold to MFS.

Trojan Equity managing director Troy Harry said the company had done "a pretty good deal" but denied getting mates' rates.

Under the terms of the deal, the PIF receives 40 per cent of any profit Trojan makes by selling the Geo scrip.

"They (the PIF) have an urgent need for funds," Mr Harry said.

"They were able to meet their requirement for cash now and also provide some upside for their unit holders."

My concerns are again that the Octaviar PIF's sale to Wellington Capital will also be at "mates rates" - there must be a law against this, to protect investor capital!!

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

Octaviar offers 118 apartments for sale
13 May 2008 | The Australian Financial Review | Ben Wilmot and Michelle Singer

The stricken Octaviar financial services and tourism group has kicked off the sales campaign for its apartment holdings, and more developments under its control are expected to hit the market in coming months.

This means that Octaviar PIF is going to sell assets paid for by investors money and that income derived from the liquidation of those assets is going to pay the Royal bank Of Scotland first. If Octaviar PIF is already selling assets, even before any talk of liquidation, then what on earth is going to be left in assets to sell to pay back investors when an orderly liquidation does eventually take place??

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

Watch video, it shows an interview with a politician in NZ who invested in MFS Pacific.
Click on: http://www.interest.co.nz/ratesblog/index.php/2008/05/19/video-mfs-pacific-slammed-by-investors/

 

[robert toms]

Re: Octaviar MFS Premuim Income Fund PIF

An offshoot of Octavia-LLA living and leisure- is relisting tomorrow 21st.It went into a trading halt at the same time as MFS.LLA holds aqariums and two snowfields in Aust plus a few sundries.
The company was floated at $1,but with Packer's Arctic Finance trying to refinance the debt by issuing shares at 7.5 cents each,I expect the share to commence trading tomorrow at under this.
MFS and OCTAVIAR were and are real turners....they have turned good money into ****e!
Hold on!

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

G'day Robert,
1] The truth is money doesn't turn into ****e, neither does it disappear. Our "good money" and assets are simply being given away at fire sale prices (not their real value) to mates or sales to vulture buyers on management panic. The value of the assets remain as before, somebodies making a killing. Our question has to be - are they colluding mates who are buying our assets through Octaviar management or are management so stupid that they are simply giving our assets away at ridiculous prices or is it simply pressure, panic selling. I don't think these people are stupid, that leaves only two other options in my mind.
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2] Some investors in the failed finance company OPI Pacific plan to ask the Serious Fraud Office to look at how the firm ended up owing around $450 million.
The firm previously known as MFS Pacific Finance convinced most of its 1200 investors to give it three years to try to recover their funds from its struggling Australian parent Octaviar, which put the money into property.

About 350 investors meeting in Auckland have been told that neither the trustee nor the remaining directors had any warning that OPI funds were in danger and had not been invested according to criteria agreed with Octaviar.

Octaviar cut-off the flow of cash back to OPI when trouble struck in Australia, and many of the loans using OPI funds were found to be of poorer quality than believed, and difficult to recover.

OPI director and former CEO Jason Maywald says they need to nail down some key elements to make the moratorium work.

OPI is pinning much of its hopes on Octaviar selling its one third stake in tourism operator Stellar Resorts.

Investment adviser James Clague, who represents some OPI investors, says the failure is a result of poor governance, poor directorship and a lack of process to ensure the loans were in good shape. He says that information has to go to the Serious Fraud Office.

OPI says the trustee, Perpetual, still retains the option to call in the receivers if the moratorium does not go to plan - but it warns that investors might then get only 40 cents back for each dollar

 

[robert toms]

Re: Octaviar MFS Premuim Income Fund PIF

Breaker1,I understand what you are saying...On a personal level my money in LLA has virtually disappeared...it looks as if Arctic Capital is going to pick up a bargain on Mt Hotham and Mt buller...My 6000 shares averaging in at 88c is not even a marketable parcel at aroung 4 cents a share.
I am more heavily committed to MFS-Octaviar and expect nothing there.
Until just before the collapse of MFS some analysts were still rating MFS as a buy.
I saw just after the collapse of MFS that the risk management-compliance officer tendered his resignation.
Surely that job was an oxymoron with MFS.

 

[wally3218]

Re: Octaviar MFS Premuim Income Fund PIF

I have money invested in PIF and have been told that they will be a "deferment of payment of redemptions to 360 days."

Now I have been informed that "Octaviar Investment Management may, in its absolute discretion, allow withdrawals before maturity in certain limited circumstances, such as extreme financial hardship. A fee of up to 2% of the amount withdrawn applies if the request for early withdrawal is approved."

Wellington Capital are going to buy this fund at a wholesale price and it looks like everyone is making money from mine and others investments. There using these investments to make money for them selves the longer this **** goes on the worse it will get.
I believe that when 360 days are up they will try and pay us any money that is left but in the mean time they will have recovered any of there own losses.

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

Wally,

Why should we trust Wellington Capital anymore than the old losers at Octaviar / MFS PIf?

Why would Octaviar palm off the PIF if it was a going concern? More than likely things are worse than we even think!

 

[wally3218]

Re: Octaviar MFS Premuim Income Fund PIF

Wally,

Why should we trust Wellington Capital anymore than the old losers at Octaviar / MFS PIf?

Why would Octaviar palm off the PIF if it was a going concern? More than likely things are worse than we even think!

Yeah I totally agree why should we trust Wellington Capital there not even a listed company with the asx.
I believe it's just another way of the major investors recouping some of there own investments before the investments fold and go bust.
I would have thought that someone independant would be checking up on the operation of Octaviar and how there running this company with disregard for any of the laws that were set in place.
Surely the investors should have rights and access to a independant umpire.

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

Wally,

I note that some investors in a similar fund based in Port MacQuarie, Donovan, Oats, Hannaford Motgage Fund (which has gone into liquidation, has formed an action group, to ensure that the liquidation process is handled honestly and efficiently. They apparently have consulted with "Stacks Solicitors" to aid them in this matter. Particularly, to take on the liquidators ( Price Waterhouse Coopers), in hiring as consultant solicitors, the same solicitors that formely ran Donovan, Hannaford, Oats. This is being seen as a conflict of interest (Duh! Obvious) and investor action group solicitors, Stacks, may take action against PWC, in an effort to get PWC to change consulting solicitors. PWS claims using the same Donovan Oats Solicitors is more financially efficient. More financially efficient for WHO, certainly not the investors? (who may only get back 50-70% of their frozen funds and the process taking at least 3-4 year to acheive anyway)

Nevertheless, I feel that Donovan Oats Hannaford management has proceeded far more fairly and orderly than Octaviar / MFS PIF. They haven't mucked investors around with multiple management changes, false promises of possibly trading again and changing management rights to a totally new company (Wellinton Capital). The problem with OCV PIF is, that stalling too long without going into liquidation could see assets dwindle out the door to pay running costs, mates new management, creditor banks, developer defaults, etc, etc. At least Donovan Oats Hannaford have given investors a target rate return of 70c in the $ - and are still paying interest. All I say is, lets get The Royal Bank Of Scotland off investor backs as quickly as possible - this RBOS control has got to be addressed by legal eagles and ASIC.

Seriuosly, I have searched the net and found no such action group for Octaviar / MFS
"Cash Enhanced Fund"
OR
"Premium Income Fund" (PIF)
OR
"Wholesale Premium Income Fund"
OR
"Dynamic Growth Equity "
If an action group has started anywhere, please let me know about it?
If someone has access to names, phone numbers, emails (preferably) of investors - please let me know on here?

IF NOT.....

Lets start an Octaviar / MFS Investment Management action group here!!!

 

[selciper]

Re: Octaviar MFS Premuim Income Fund PIF

What about the Trustee? MFS/Octaviar PIF kept on beating the drum about the Trustee being the "custodian" of investors' funds. The Wellington deal should be examined immediately by the appropriate authorities. Hopefully some media outlets would by now be checking all this out.
And the PIF newsletters are a total farce.

 

[Javier]

Re: Octaviar MFS Premuim Income Fund PIF

I am an investor in the PIF with many millions of $ of my own money in there, so I am extremely nervous to say the least. I have spoken to Guy Hutchings dierctly on a couple of occassions in the last 2 months, and whilst he assures me that we will recoup most, if not all our caiptal..I have my doubts. He himself has some of his own money in there.

What I can't work out is why Wellington Capital (WC) is now in the picture. I mean what is the financial advantage to them. I am hoping that they will be a white knight and at least pursue the $50m from the parent co to cover the shortfalls..but what does WC have to gain apart from a client list of investors that would not re-invest as a going concern?? I am more than happy to talk with other investors to get an action group started..I am in Sydney.

 

[selciper]

Re: Octaviar MFS Premuim Income Fund PIF

I also meant to add that Ms Hutson might appease PIF investors' worries by immediately stating that she has the investors' financial well-being as number one priority. As the Wellington Capital website has been down for days, you can only support the many sharp questions being raised in this very helpful thread (thanks to you, Breaker1). Hope that PIF are reading these posts.

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

I am an investor in the PIF I am hoping that they will be a white knight

Javiar,
Thanks for your reply. I find that we have been brainwashed by controlled media to always hope for a John Wayne to come riding out of the west to solve the problems of the many. What the abusers fear is that the many catch on to whats going on and finally get organised as a force to be reconed with. My gut feelings are that Wellington Capital is no white knight, even, possibly the very opposite.

Our weakness is that we are individuals with no clout - organised, we have a chance for the better. Read what some organised investors have said recently regarding the failure of Donovan Oate Hannaford a similar investment company to MFS Investment arm (under):

“Although we are all experiencing the intense financial difficulties, worry, uncertainty, frustration and anger over DOHM failing to meet the expected obligations to their debenture holders, we must focus on an appropriate economic strategy to achieve our mutual objectives ...“We need to form a small and manageable committee backed by loyal professional advisers to disseminate information and recommend appropriate courses of action.”

The group says it has sought independent legal advice from commercial, property and mortgage specialists and, following meetings with the receivers and trustee, presented the receivers, Pricewaterhouse Coopers, with a list of “27 issues of concern” (see below).

These deal with a range of issues to do with the management of the company and the conduct of the receivership, including the ongoing management role of Donovan Oates Hannaford Mortgage Corporation directors and staff and the expense involved in having the prominent firm of Pricewaterhouse Coopers acting as receivers".

We Octaviar Investors need to head in the same direction - not wait for John Wayne to turn up. So our initial real problem, is how do we get in contact with the many. Any ideas besides this thread??

I specifically gave this thread the title it has, so that investors Googling will get this mostly first up on a search. Over 200 (guess) people have viewed it.

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

What about the Trustee? MFS/Octaviar PIF kept on beating the drum about the Trustee being the "custodian" of investors' funds. The Wellington deal should be examined immediately by the appropriate authorities. Hopefully some media outlets would by now be checking all this out.
And the PIF newsletters are a total farce.

When I rang OCV PIF and asked about the trustee, she said, "I am not aware that we have a trustee" - perhaps she is mistaken, confused or what. I have to clear this up. I understood that the Queensland Public Trustee was involved at some stage, mainly regarding MFS shares and wanting to look at their books - but nothing seems to have come of it (in the press anyway)

If you know of any other investors - put them onto this site.

If initially we can only get a dozen of us together - we are better than the single.

The three or four of us on here so far, lets start making enquiries about Wellington and the Public Trustee and get back to each other here!

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

UPDATE

This is my understanding under (correct me immediately if I am wrong in any facts):

* Wellington Capital have an option for shares in the Octaviar Pty Ltd Company side (the ASX listed part of Octaviar [not the PIF, WPIF, (investment arms), etc]. Another Wellington benefit is that they simply get the Management rights to the investment arms (PIF, WPIF,CEF, MYF, DGEF). They do not own the assets of the PIF, WPIF, etc

* "Perpetual" are simply the Registrar and Custodian of the assets - they apparently have little or no management rights over the Octaviar / MFS Investment Management side (PIF, WPIF, etc) - so they have no say over the day to day management matters. Further, Wellington Capital may or may not decide to keep Perpetual on as the Custodian and may appoint another Registrar / Custodian (but this has not been decided yet).

* Octaviar / MFS Investment Management (Ocv/MFSIM) have a current strategy to simply pay off The Royal Bank Of Scotland by selling off OCV/MFSIM assets - the idea obviously is to pay off this bank vulture first, then see what is left in assets and only then devise another strategy for we the investors. This of course begs the question - what will be left for us? Ocv/MFSIM has not been specific as to what assets are available, what they are worth and what specific assets are being sold to keep RBOS happy. Why legally OCV/MFSIM thinks the bank gets asset money first has to be investigated further.

* Apparently, if OCV/MFSIM is passed over to Wellington Capital, Guy Hutcings (PIF CEO) and Marylin Watts (PIF MNGR) will still be in similar positions after the transfer.

* So what happens after 360 days expire - is 100% of our assets going to be repaid? Just because we investors are waiting 1 year does not in any way guarantee 100% return on asset sale or even any interest backdated. Seriously, if the RBOS is getting first chop of the assets so far, it seems unlikely we will get back a high % figure - but that should be our goal!!

* We investors should contact ASIC about "The Corporations Act" and find out how we the investors can hold a general meeting with OCV/MFSIM management and press them for answers and request what we want! OCV/MFSIM is NOT planning any general meeting of investors - so it's really up to us!

*OCV/MFSIM cannot expain sensibly why it is in our best interests to be managed by the Wellington Group (Chris Scott mates no doubt).

AS A GROUP - WE MUST TRY TO ENSURE MAXIMUM RETURN TO WE THE INVESTORS!

 

[Javier]

Re: Octaviar MFS Premuim Income Fund PIF

I rang Guy again today..I spoke to someone else..again no-one can explain to me what the benefit of WC will be for our funds. I left a message for Jenny Hutson too. We are getting treated like mushrooms. This is OUR money. I agree we have to start to do something. I will call asic tomorrow. Breaker I have sent you an email with my details. We must form a committee now..these people don't give a f%$K about our money!!

 

[breaker1]

Re: Octaviar MFS Premuim Income Fund PIF

Thanks Javier,

We had a good talk - not looking forward to my phone bill. Heh! Heh!

Things to do:

1] Find out where all our money is:
* who are the PIF's debtors (developers, businessmen, etc) and how much do they owe (yet to come in when loans from the PIF are paid back)?
* how much of our money (%) is in physical assets and what might be the expected return, if sold in an orderly manner?
* what is owed to the PIF from the Octaviar Ltd side - $50 million?
* any other monies to come into the PIF (e.g. Octaviar Premium Income sold out of GEO Property Group on May 15, receiving $10.2 million consideration for the 40,080,156 shares (9.4%) sold to Trojan Equity - what happened to that money??).
* on the minus side, how much more does the PIF owe to their creditors (E.g., Royal Bank Of Scotland = $100 million still to be paid ($64 million apparently already paid off, if $64 mill. paid off, where did the PIF get this money?)

In other words - what is the maximum money to come back to the PIF between now and next January 2009, when the redemptions can be exercised and what is the total money the PIF owes and what is going to be left % for redemptions, if the PIF doesn't go into liquidation before then?

A full finacial disclosure is now totally in order from the PIF managers. No more mucking investors around!

2] Chase up ASIC for the regulations for holding an extra-ordinary general meeting of PIF investors with PIF management. What are the processes involved? What do we expect to acheive with such a meeting?

3] A full explaination as to what Wellington Capital has to do with us and what are the REAL benefits to us OR is it just going to benefit other mates, financial creditors (RBOS) and predatory hangers on ?

4] Starting an action group of committed investors - that means anyone in the PIF

5] I am giving out my email address to investors who wish to contact me direct - it is: breaker1@aapt.net.au

 

[seamisty]

Re: Octaviar MFS Premuim Income Fund PIF

breaker1 hi, I am a PIF holder and tried to e-mail you but it bounced.I spoke with ASIC yesterday and am not confident we will get much help in the near future there. I live in WA so I have to do everything by phone or e-mail which I don't mind, it is just very time consuming. I have also lodged a written letter of complaint with the the ASX. A few of us had funds accepted after Dec31st 2007 and our argument is that MFS was already in default with the RBOS at this stage but did not disclose it to investors. We have asked ASIC to make a ruling on the failure to disclose angle but I won't hold my breath waiting on action from them. I have tried contacting Jenny Hutson and Guy Hutchings. I do not like dealing with anyone at OCV anymore. I am sick of their BS. I agree something needs to be done. Regards Seamisty