Wellington Capital PIF/Octaviar (MFS) PIF

Re: Octaviar MFS Premium Income Fund PIF

Octaviar battles for ASX survival


by Scott Rochfort
September 15, 2008

THE management of Octaviar has expressed hope the distressed Gold Coast property and tourism group can be resurrected and even one day resume trading on the stock exchange, after putting the company into voluntary administration over the weekend.

Eight months since the group was suspended from trading on the ASX, Octaviar on Saturday appointed Deloitte partners John Grieg and Nicholas Harwood as voluntary administrators.

The move came after the Queensland Supreme Court rejected an application by the Public Trustee of Queensland (PTQ) for the company, formerly known as MFS, to be immediately put into liquidation.

In a statement issued on Saturday, Octaviar said: "The directors, management and staff of the Octaviar group look forward to working with the voluntary administrators to achieve an accommodation with all creditors to produce a better outcome for stakeholders than liquidation."

Chief executive Craig Chapman said it was his hope the administrators could draft a deed of arrangement with Octaviar's creditors that would allow the group to "pop out the other side and trade again".

"Ultimately, that's what we want to do," he said.

The company's offer to pay out noteholders 22.5 ¢ in the dollar has already been accepted by two of its four key creditors, the New Zealand OPI Pacific Finance and the former MFS Premium Income Fund.

The PTQ represents noteholders who hold $349 million in convertible notes that were originally due to expire in 2011.

Both the PTQ and Challenger, which holds another $100 million in notes, have contended the notes went into default when Octaviar sold its 65% stake in the tourism group Stella to the private equity group CVC Asia Pacific for $406 million earlier this year.

Investors in the convertible notes are due to meet on September 30 to consider Octaviar's offer.

http://www.pt.qld.gov.au

-------end of article----------

direct link: http://business.theage.com.au/business/octaviar-battles-for-asx-survival-20080914-4g9q.html

I note that PIF have accepted 22.5c in the $ from OCV.

Re: Octaviar MFS Premium Income Fund PIF

... and this in the Courier Mail

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

Michael King's Octaviar goes into administration

by James McCullough

September 15, 2008 12:00am

AS MFS founder Michael King was enjoying a day playing polo, his corporate brainchild, now known as Octaviar, was finally being put out of its misery.

Just hours earlier Deloitte was appointed voluntary administrator to Octaviar, which has creditors' claims in excess of $1 billion.

The administration is a further blow for the Gold Coast property sector, which has been hammered by a string of failures including the receivership of the Raptis Group and ongoing concerns about highly leveraged groups such as City Pacific.

King was oblivious to the news, competing in the annual Mercedes-Benz polo tournament at Neill Ford's expensive Beaudesert property.

Deloitte corporate reorganisation partners, John Greig and Nicholas Harwood, were on Saturday appointed voluntary administrators of Octaviar Ltd, Octaviar Financial Services Limited, Octaviar Investment Notes Limited and Octaviar Investment Bonds Limited.

The appointment was made by the directors, following hearings brought by the Public Trustee of Queensland before Justice Philip McMurdo in the Supreme Court of Queensland to wind up the companies on Friday.

Mr Greig said yesterday that the aim of the voluntary administrators was to maximise the chances of Octaviar continuing and ultimately providing a better return for all creditors compared to that which may result from an immediate wind up. A further hearing in the Supreme Court of Queensland today is expected to confirm the date of the next hearing to decide the future of the group of Octaviar companies.

At this stage the date is slated for 24 October.

"We understand creditors' claims are likely to be in excess of $1 billion," Mr Greig said.

He said the larger claims were about 550 noteholders, OPI Investments, Premium Income Fund, Bond holders and the Australian Taxation Office.

"Over 90 per cent of the notes are held by institutional investors and we also understand there may be significant contingent claims from various sources," Mr Greig said.

Mr Greig said that, after conducting an investigation in to the affairs of Octaviar, the administrators will report to creditors as to whether it is in their interests for the group to enter into a Deed of Company Arrangement to restructure its business, or if the companies should be wound up.

The investigation and report are expected to take several months.

----------end of article------------
direct link: http://www.news.com.au/couriermail/story/0,23739,24344120-3122,00.html

Re: Octaviar MFS Premium Income Fund PIF

selciper said:

Marcom's observation that the PIFI recent unsolicited mail-out may have breached privacy laws is worth noting.

Click to expand...

Sorry but if you refer to this article below about the infamous David Tweed it was all above board.

Who can access your member register?: unsolicited offers to shareholders

Companies are sensitive to requests for access to their list of shareholders.

Under section 173 of the Corporations Act 2001, companies are required to provide a copy of their register of members within seven days to a person requesting access to the register and paying the required fee.

What prevents persons obtaining a copy of the shareholder register and writing direct to shareholders to buy their shares in situations where the takeover rules do not apply ?

Corporations Act Part 7.9 Division 5A was introduced in 2003 to deal with unsolicited off-market offers, short of a takeover offer (section 1019D).

In summary, a person who makes an unsolicited offer to buy shares off market for a certain price must provide:

* a written statement setting out the market value of those shares on the day the offer is made; and
* a minimum of one month in which to accept the offer. (Section 1019I)

Although it is not illegal to make an unsolicited offer to buy someone’s shares, it is against the law to mislead or deceive retail shareholders into accepting an offer.


Division 5A was introduced to regulate the activities of share traders such as David Tweed and his associated companies including Direct Share Purchasing Corporation and National Exchange Pty Ltd. Tweed typically offers to buy shares from small shareholders at an underprice or by annual instalments over periods of up to 15 years.

National Exchange was the subject of the first litigation in relation to Division 5A (see ASIC v National Exchange Pty Ltd in which the Full Federal Court refused to overturn the original decision that the offer was not misleading or deceptive, or unconscionable.)

ASIC has intervened or issued warnings in respect of Tweed's advances in respect of Clime Capital, OneSteel, Aevum and ColesMyer.

In November 2006 ASIC permanently banned David Tweed from providing financial services.

Mr Tweed was banned after ASIC found that he had failed to comply with a financial services law and believes he will not comply with a financial services law in future. The breach of financial services laws over a period of time, which led to the banning order against Mr Tweed, related to the way in which Mr Tweed and National Exchange made a number of unsolicited offers to purchase shares in OneSteel and Aevum.

However the banning of Mr Tweed from the financial services industry will not prohibit him from making unsolicited offers to investors. Making an unsolicited offer to purchase shares on one’s own behalf does not require an AFS licence.

Re: Octaviar MFS Premium Income Fund PIF

So with Octaviar being under admin. what's the story about the support facility? Do we still end up with $44.4M, with a quarter of that coming to us in a special distribution?

Re: Octaviar MFS Premium Income Fund PIF

Goldfinger,
Might have been above board but clearly not welcomed and considering the ASIC intervention / hinderance NOT appreciated!

Re: Octaviar MFS Premium Income Fund PIF

goldfinger 38

You had better read the practice note again - the context is unsolicited off-market offers, short of a takeover offer (section 1019D).

Better get your solicitor to check whether soliciting a vote in favour of a certain outcome at an extraordinary meeting is also covered. Also note that the general ambit of the Trade Practices Act provisions governing misleading and deceptive conduct may have a bearing, just as the practice note highlights in relation to unsolicited offers.

Hope that this helps. I am not providing legal advice just making an observation.

Re: Octaviar MFS Premium Income Fund PIF

Mary Lynch said:

So with Octaviar being under admin. what's the story about the support facility? Do we still end up with $44.4M, with a quarter of that coming to us in a special distribution?

Click to expand...

Hopefully this will be the case Mary. Seamisty

Re: Octaviar MFS Premium Income Fund PIF

I heard that there is a group who will be congregating on 307 Queen Street at 12.30pm to show their solidarity and support for WC in regards to the PIF today. Can anyone confirm this please? Seamisty

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

Ok sugar, I couldn't remember where I saw that figure, so looked in the Explanatory Memorandum and it is the same but just as at May31. I hope that is correct and she is not telling fibs! It is less to have to rebuild!!!Seamisty

Click to expand...

Good morning Seamisty All,
I would still like to know for sure whether the PIF is worth $413m as of today, as JH quoted to a reporter last week...
What do you think Seamisty?
Is there a way to find out?

Re: Octaviar MFS Premium Income Fund PIF

sugar3157 said:

Good morning Seamisty All,
I would still like to know for sure whether the PIF is worth $413m as of today, as JH quoted to a reporter last week...
What do you think Seamisty?
Is there a way to find out?

Click to expand...

Sugar the only way to find out for sure would be to call WC and ask and hope there is someone there qualified to answer. Lately whenever I call all the hierachy is off fighting it out in courts of law on behalf of the PIF. Seamisty

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

I heard that there is a group who will be congregating on 307 Queen Street at 12.30pm to show their solidarity and support for WC in regards to the PIF today. Can anyone confirm this please? Seamisty

Click to expand...

This has just been confirmed by phone, there will definitely be a group of PIF supporters meeting in Brisbane today to demonstrate at the heart of the financial quarter of their absolute outrage at ASIC and also to demonstate faith and encouragement for Jenny Hutson and Wellington Capital. They would appreciate all the support they can from others in Brisbane. Seamisty

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

This has just been confirmed by phone, there will definitely be a group of PIF supporters meeting in Brisbane today to demonstrate at the heart of the financial quarter of their absolute outrage at ASIC and also to demonstate faith and encouragement for Jenny Hutson and Wellington Capital. They would appreciate all the support they can from others in Brisbane. Seamisty

Click to expand...

WC has confirmed that they have had an approach for a supporters group to meet at 12.30 today at 307 Queen Street.

Re: Octaviar MFS Premium Income Fund PIF

Good luck to the supporters today. Fight the good fight!!

If I lived in Brisbane I would be be with you too :iagree:

Re: Octaviar MFS Premium Income Fund PIF

Maverick2802 said:

Good luck to the supporters today. Fight the good fight!!

If I lived in Brisbane I would be be with you too :iagree:

Click to expand...

"WHO IS THE TALL DARK STRANGER THERE..." I'm 100% with you Boy!

Good Luck to All those good people who could make it.

CHEERS. :sword::sword:

Re: Octaviar MFS Premium Income Fund PIF

Article in The Age yesterday...

Tiny exchanges have a quiet day or two
http://www.theage.com.au/news/busin...uiet-day-or-two/2005/09/13/1126377313349.html

Re: Octaviar MFS Premium Income Fund PIF

This is my first post to this thread after some months of observation.

I had a substantial "investment" in what is the PIF that is now valued (by Wellington) at +/-40% of my investment value. However, the immediate value is 14% which is the value at which I hold the "investment" on my books. I feel that this "Jenny struggles to get value reduced to $0.43 for pensioners" is a load of codswallop. If "Jenny" had any feeling for pensioners then the value would have been pushed at $0.14. An analogy is the valuation of shares. When I bought ANZ last year the "value" was what I could get by selling them on ASX that day, say $30.00, but the value today is what I can sell them for today, say $16.00, and not some Dreamworld Wellington price of $0.43 for the PIF in 5 years time. The true value, today, of the PIF units is $0.14 (or whatever is immediately realisable) NOT the price in 5 years time. If I applied Wellington's logic to ANZ shares then I'd be valuing them at $40.

I see no sense in handing Hutson the keys to $413m. without ever being able to withdraw my funds other than by going through some Mickey Mouse stock exchange in return for $0.06 a unit p.a. plus a possible capital repayment whenever Wellington feels like it. Perhaps I'm wrong but Hutson, her husband, and Chris Scott et al are too closely entwined to be trusted with my money. The NSX has the potential to hand "whoever" control of $400 m. for 20% of that figure.

I would like to see the PIF put into administration to be managed by someone like PriceWaterhouseCoopers with a view to orderly closure of the fund by, say, June 30 2013. This won't be appealing to the "Lady In Red" but it's the only way I'd be happy with.

If Wellington does retain control of the PIF then I recommend you buy a large economy sized jar of KY Jelly 'cause you're gonna get screwed and you'll need something to ease the pain.

Re: Octaviar MFS Premium Income Fund PIF

demodocus said:

This is my first post to this thread after some months of observation.

I had a substantial "investment" in what is the PIF that is now valued (by Wellington) at +/-40% of my investment value. However, the immediate value is 14% which is the value at which I hold the "investment" on my books. I feel that this "Jenny struggles to get value reduced to $0.43 for pensioners" is a load of codswallop. If "Jenny" had any feeling for pensioners then the value would have been pushed at $0.14. An analogy is the valuation of shares. When I bought ANZ last year the "value" was what I could get by selling them on ASX that day, say $30.00, but the value today is what I can sell them for today, say $16.00, and not some Dreamworld Wellington price of $0.43 for the PIF in 5 years time. The true value, today, of the PIF units is $0.14 (or whatever is immediately realisable) NOT the price in 5 years time. If I applied Wellington's logic to ANZ shares then I'd be valuing them at $40.

I see no sense in handing Hutson the keys to $413m. without ever being able to withdraw my funds other than by going through some Mickey Mouse stock exchange in return for $0.06 a unit p.a. plus a possible capital repayment whenever Wellington feels like it. Perhaps I'm wrong but Hutson, her husband, and Chris Scott et al are too closely entwined to be trusted with my money. The NSX has the potential to hand "whoever" control of $400 m. for 20% of that figure.

I would like to see the PIF put into administration to be managed by someone like PriceWaterhouseCoopers with a view to orderly closure of the fund by, say, June 30 2013. This won't be appealing to the "Lady In Red" but it's the only way I'd be happy with.

If Wellington does retain control of the PIF then I recommend you buy a large economy sized jar of KY Jelly 'cause you're gonna get screwed and you'll need something to ease the pain.

Click to expand...

:remybussi Bravo!!!!

Re: Octaviar MFS Premium Income Fund PIF

Yes bravo demodocus, bravo chap!

I am glad you hung out so long before your posting to this thread.

The thing is that is we all want to get all that and more, trouble is noone has stepped up to deliver it.

Much like going to a vegetarian restaurant and ordering a nice fat juicy Kobe steak, just ain't gonna happen.

WC ain't that kinda restaurant for now either. Limited menu due to other greedy thieves raiding the fridge too many times, you dig?

Re: Octaviar MFS Premium Income Fund PIF

Maverick2802 said:

Yes bravo demodocus, bravo chap!

I am glad you hung out so long before your posting to this thread.

The thing is that is we all want to get all that and more, trouble is noone has stepped up to deliver it.

Much like going to a vegetarian restaurant and ordering a nice fat juicy Kobe steak, just ain't gonna happen.

WC ain't that kinda restaurant for now either. Limited menu due to other greedy thieves raiding the fridge too many times, you dig?

Click to expand...

I was just wonderng what some body has paid to rent a crowd Hmmmmmmm Cheers //////////

Re: Octaviar MFS Premium Income Fund PIF

demodocus said:

This is my first post to this thread after some months of observation.

I had a substantial "investment" in what is the PIF that is now valued (by Wellington) at +/-40% of my investment value. However, the immediate value is 14% which is the value at which I hold the "investment" on my books. I feel that this "Jenny struggles to get value reduced to $0.43 for pensioners" is a load of codswallop. If "Jenny" had any feeling for pensioners then the value would have been pushed at $0.14. An analogy is the valuation of shares. When I bought ANZ last year the "value" was what I could get by selling them on ASX that day, say $30.00, but the value today is what I can sell them for today, say $16.00, and not some Dreamworld Wellington price of $0.43 for the PIF in 5 years time. The true value, today, of the PIF units is $0.14 (or whatever is immediately realisable) NOT the price in 5 years time. If I applied Wellington's logic to ANZ shares then I'd be valuing them at $40.

I see no sense in handing Hutson the keys to $413m. without ever being able to withdraw my funds other than by going through some Mickey Mouse stock exchange in return for $0.06 a unit p.a. plus a possible capital repayment whenever Wellington feels like it. Perhaps I'm wrong but Hutson, her husband, and Chris Scott et al are too closely entwined to be trusted with my money. The NSX has the potential to hand "whoever" control of $400 m. for 20% of that figure.

I would like to see the PIF put into administration to be managed by someone like PriceWaterhouseCoopers with a view to orderly closure of the fund by, say, June 30 2013. This won't be appealing to the "Lady In Red" but it's the only way I'd be happy with.

If Wellington does retain control of the PIF then I recommend you buy a large economy sized jar of KY Jelly 'cause you're gonna get screwed and you'll need something to ease the pain.

Click to expand...

Welcome Demo,

If JH could get a valuation of 14c and thus reduce pensioners deeming/assets tests by 86% and not the current 55% (45c) and still pull off the 6c per annum distribution payments, then all PIF pensioners would be laughing. Pensioners would be getting more interest distribution than they got before, if you add the extra amount Centrelink pay them on that 14c assesment.

We were looking forward to 3c (6.5% of 45c in $) before Christmas, but with the ASIC action at the Supreme Court Of Queensland, the proceedings being heard on Wednesday 17 September 2008, we could have the vote drag out till next year, together with any payments being stalled till next year, not to mention the PIF losing the WC team, if they get sufficiently peeved off. I believe JH is made of better stuff than this though.

I am not sure whether ASIC is taking on matters with Item 1 or Item 2 or both, but there is a good chance it's not going to be resolved on Wednesday.

I am amazed that ASIC does nothing substantial with MFS/OCV or former PIF managers, who's abusing actions stand out like a sore thumb, but on the instigation of what appears a small group of investors, it starts jumping flaming hoops in record speed??? At the same time PIF investors don't want to be overly harsh on ASIC, because we still need them now and in the future.

The PIF - a thorn in our sides folks:
http://www.youtube.com/watch?v=Mh4qJqGBvV0&feature=related