Wellington Capital PIF/Octaviar (MFS) PIF

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Perhaps it's there and I've missed it, but there appears to be no mention of the February 22 judgement on the WC PIF website.

http://www.newpif.com.au/

No there is no mention yet. I have been watching the Federal Court decisions site and the CA progress site and no decision posting by the Court. Not sure how WC found out about the decision - probably by badgering Justice Perram"s associate.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

selciper, just a thought - If doctors bury their mistakes... what do lawyers do???

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

selciper, just a thought - If doctors bury their mistakes... what do lawyers do???

Blame someone else then send them the bill!!!

A lawyer was driving his big BMW down the highway, singing to himself, “I love my BMW, I love my BMW.” Focusing on his car, not his driving, he smashed into a tree. He miraculously survived, but his car was totaled. “My BMW! My BMW!” he sobbed.

A good Samaritan drove by and cried out, “Sir, sir, you’re bleeding! And my god, your left arm is gone!”

The lawyer, horrified, screamed “My Rolex! My Rolex!”







Seamisty

 

[charles36]

Please note the title of the forum has now been altered to reflect the up to date name of the fund. Interested people should be made aware of the present name of the PIF. Kind regards to all Charles 36.

 

[Mary Lynch]

Just a note to any BTFMFers out there...I am not sure what website you are using at the mo, it has changed so many times, I can't find you.

However, I take it you all know that we are going to be offered two options soon.....to take 6 monthly installments (the % determined by how many want their money back I presume) with $ paid at the unit value at the time; or to leave our $$ with them, as the unit value is apparently rising. I presume that distributions will accompany the 2nd option....otherwise it wouldn't attract many;

I heard this via a friend who has a friend who got it from Garry an Irishman who workes at BT Garry said that there are 6 times as many people working on our fund than they had at City Pacific, and he is sincere about the fund going from strength to strength now.

(I also saw an article in google news briefly referring to the above.

 

[lightlystrung]

Hi Mary,

Many FMF BT investors will be very happy to see that there is talk of some way forward. I am one of those people and assume you are a unitholder too.

Why don't you post this information in Aussie Stock Forums FMF Forum. We really need to promote a wider use of this open forum.

There are three other forums, but they are heavily moderated and we need somewhere for open and constructive discussion.

If there is really any hint of light at the end of this long tunnel, it is sad that the RE Balmain Trilogy have left us all in the dark for so long, as there is a huge surge of unrest amongst unit holders.

lightlystrung

 

[Mary Lynch]

Well, Lightly Strung, I did post last week on the FMF Forum, but no-one has responded. There has been no movewment on there for ages.....and it was mostly Mellifuous anyway.

Where are all these disgruntled people?

I received a very "together" update a month or so ago, quite clear that things were moving towards a way of getting our $$$ back to us, and now its going to happen.

Let's be positive; I think the BT team are good.

 

[atlas1950]

Hi all,

Noticed in today's Gold Coast News Bulletin that the courts will allow the sale of the Sheraton Mirage to go thru. There goes another $20 million that PIF will not get.Why we even went to the courts to try to stop the sale is only something JH would know. Holding the second mortgage, I thought we would have no chance. But what do we know. It is easy for JH to play with OUR money.

Michael

 

[Duped]

Court approves sale of Sheraton

Nick Nichols, business editor | March 2nd, 2010

ST George Bank has been given the all-clear to sell the Sheraton Mirage resort on the Gold Coast after a Supreme Court of Queensland decision handed down yesterday afternoon.

The decision is a big win for the property finance sector, but a major loss for investors in the Premium Income Fund (PIF).

The fund and Joe Ross's LJK Nominees -- second and third mortgagees to the Sheraton respectively -- will get nothing from the $62.5 million sale to Indian developer Pearl Australasia.

PIF, headed by Wellington Capital's Jenny Hutson, and LJK took St George to court in January arguing that, while St George as first mortgagee had a right to sell Sheraton land and building, it did not have the right to sell the hotel business.

Both argued the agreed sale price was well below the current market.

A 'disappointed' Ms Hutson last night said she would consider appealing the decision, although she conceded she must act quickly.

The sale was to have settled yesterday but that deadline has been extended.

Peter Kennedy, a partner with law firm McCullough Robertson which is acting for St George, yesterday welcomed the decision.

He said had the court ruled in favour of PIF, it would have 'sent shockwaves through the banking community'.

"(This ruling) confirms what we have always believed to be the case," he said.

But Ms Hutson said if yesterday's decision stood it had the capacity to alter lending involving multiple financiers.

 

[Duped]

Thanks atlas1950

Could JH be serious about her comment "if yesterday's decision stood it had the capacity to alter lending involving multiple financiers". Or is this statement just propaganda or an adhoc remark to save face? Or so WC can prop the PIF asset value up until WC gets paid?

Even I knew that second mortgages put a financier in a very weak position. After all, isn't that what PIF was sold on: first mortgages? So important it seems to be that Citi Pacific put it in their fund's name: First Mortgage Fund.

I know I'm repeating myself but: King and Co did that to us. I vaguely recall that MFS Ltd bought the asset and then sold it to Raptis less than a year later and booked a fat profit. I'm guessing that MFS Ltd sweetened the deal Raptis by giving him this very attractive 2nd mortgage from PIF. If so, then what about that as a related party transaction.

If PIF investors want to send a message then simply don't give Westpac/St George any of your business. I won't. Westpac/St George had a choice but it decided to leave the 10,000 potential Westpac/St George clients stuck in PIF with absolutely nothing.

 

[selciper]

"A 'disappointed' Ms Hutson last night said she would consider appealing the decision, although she conceded she must act quickly." (GGB)

Oh, so there's still a chance to spend more of our diminishing money on an appeal! Heaven help us. Will this horrendous legal merry-go-round ever stop? And will WC ever win even one cent for PIF? As they say, sound judgment is everything.

 

[atlas1950]

Hi all, We can't blame Westpac. As holders of the first mortgage, they are at the head of the queue. WC had second mortgage, and as such if there is insufficient funds, PIF gets zero.

Let's not blame Westpac, but blame King for taking out a second mortgage. From my memory, MFS could only invest in first mortgage securities, so why were we exposed to a second mortgage in the first place.

Michael

 

[Cookie1]

Was McCullough Robertson (JH's husband's/ partner's law firm) also representing the PIF, as usual? If so, I would think it would be a major conflict of interest for McCullough Robertson. Just using them for PIF legal affairs is surely a conflict of interest for JH in any case.

 

[Duped]

Yes you are right atlas1950. I can't blame Westpac/St George for PIF being 2nd in line. But. Westpac/St George had power over me. It had a choice and could have thrown some crumbs my way. It chose not to. It chose to not share some of the pain of this arrangement. The only power I have over Westpac/St George is not to give it my business. So that's what I'm going to do. I'm certainly not going to cut off my nose to spite my face. But when all four pillars stand before me substantially equal . I won't be engaging Westpac/St George.

 

[infinity]

Hi to all Pif unitholders:
When will enough be enough?
How can we get rid of JH/Wellington, at any cost?
How much more abuse do we have to take?
Who has the power to do so? What about us???
Please,let's get the ball rolling and change management.

Infinity

 

[lawry1dog]

Wellington Capital has now lost another legal action about the Mirage Gold Coast sale to Pearl, and so more money coming out of our Fund.

Wellington must RESIGN and hand the Fund to someone else.

Why cannot we convene a Unit Holders meeting and do this?

Come on Breaker1 and Seamisty, lets book a venue and do this.
What about sending out a letter to Perpetual, who has by far the most Units
in the Fund, and get them to vote on changing management.
We just need a majority.

Who knows the address of Perpetual? And will write to them.

At least this is start. I can then inform people on the forum of what happens.

 

[Cookie1]

NSX Release 10 March 2010 confirms report in Gold Coast Bulletin; once again we learn the bad news in the media before appearing on the NSX. (Note the errors; must have been done in a hurry or they've lost their proofreader.)

http://www.nsxa.com.au/announcements_list.asp?nsxcode=PIN

Premium Income Fund
NSX Release: 2 March 2010

Raptis Group Loan – Sheraton Mirage, Gold Coast

On 1 March 2010, Justice Margaret Wilson in the Supreme Court of Queensland handed down judgement in the proceedings heard on 12 February 2010 in relation to the Sheraton Mirage. The Premium Income Fund holds a second ranking mortgage over the Sheraton Mirage and a second ranking fixed and floating charge over the assets of the owner of the Sheraton Mirage, SP Hotels Pty Ltd. SP Hotels Pty Ltd is a member of the Raptis group of companies.

Justice Wilson made orders enabling St George Bank Limited to sell the Sheraton Mirage on an unencumbered basis.

The effect of this judgement is that if the contract entered into between by St George and Pearls Australasia for $62.5 million proceeds, St George, which is owed is owed in excess of this amount, will receive all of the proceeds and there will be no return to the Premium Income Fund.

 

[marcom]

lawry1dog, I think this is exactly what JH wants us to do so she can pick up the 2% exit fee and then retire from PIF RE before we sue her (expletives deleted) for damages. Remember that WIM is being sued by us in the CA, and we can also sue WC and their insurers for losses to the fund caused by the RE's actions.

Also something has happened in relation to the ASIC case - the Brisbane Supreme Court site http://www.courts.qld.gov.au/esearc...eNumber=12122/09&Court=Supreme&Location=BRISB
shows that the directions hearing date set for today has been removed and the documents tendered section says "25/02/2010 Consent Adjournment of Application lodged by the Applicant" (ASIC). I do not know what has led ASIC to agree to adjourn the proceedings - possibly it has some thing to do with the Liquidators investigations of the MFS Directors which is due to commence in April, or possibly the prospect of criminal proceedings may have arisen.

 

[selciper]

Marcom refers to the Liquidators' looming public hearings. While sharing a strong desire to see the back of WC, it can make a lot of sense to wait and see what might be exposed at the April hearings. For all we know, some of the hearing's ripples could help us steer a better-informed course in search of a brighter future. And I share everybody's impatience at the moment.

 

[charles36]

Did I read correctly that McCullough Robertson acted for the bank in the Sheraton fiasco, they no doubt acted for Wellington Capital. Can anyone enlighten me please. Kind regards Charles36.