Wellington Capital PIF/Octaviar (MFS) PIF

This article is worth a read::http://www.smh.com.au/business/mult...estors-after-class-action-20100721-10kyn.html

''It represents a great outcome for investors generally because it sends a message to corporate boardrooms throughout the country that people who do not comply with their continuous disclosure obligations will pay, and they'll pay big time,'' he told reporters.

Mr Watson said the settlement also represented a victory because the compensation achieved was 20 times greater than what participants in the class action would have obtained had they accepted a settlement offer made by Multiplex under an Australian and Securities Investment Commission (ASIC) enforceable undertaking in 2007.
Mr Watson said the case established three important principles - that class actions work, litigation funding provides access to justice, and the ASIC settlement was inadequate.

http://www.smh.com.au/business/mfs-assured-it-was-solvent-before-collapse-20100721-10l8x.html

MFS assured it was solvent before collapse

Tinkler buys part of King polo field
Nick Nichols, business editor | July 22nd, 2010

NATHAN Tinkler has bought a major slice of Michael King's lush polo property Elysian Fields as the media-shy mining magnate continues to beef up his horseracing operations in the Gold Coast Hinterland.

The purchase comes a month after Mr Tinkler's Patinack Farm bought the adjacent Wadham Park, the thoroughbred racing complex that has battled to find a buyer for the past three years.

The deal for the 57ha Elysian Fields site, representing more than a third of Mr King's polo complex, remains under wraps and has yet to settle.

Full story::http://www.goldcoast.com.au/article/2010/07/22/240891_gold-coast-business.html

A suitable slogan for those in charge?

"Three in one - Credibility, Certainty, Courtesy."

seamisty said:

http://www.smh.com.au/business/mfs-assured-it-was-solvent-before-collapse-20100721-10l8x.html

MFS assured it was solvent before collapse

Click to expand...

"...
Gavin Thompson, SC, then continued the examination on behalf of Octaviar Investment Noteholders and Octaviar Investment Bondholders, who are represented by the Public Trustee of Queensland.

One focus of his inquiry was a letter presented to the MFS board by the law firm Freehills on March 16, 2008, which said there was ''reasonable grounds'' to believe a crucial standstill agreement could be reached with its five main creditors. ...

The corporate regulator considers this debt payment test an important indicator of solvency.

The court heard the letter said MFS management and Korda Mentha's 333 Capital considered there to be ''reasonable grounds'' that five large creditors of MFS would agree to the proposed standstill.

The court was told that Korda Mentha was appointed on January 18 to address solvency issues and that the board had charged them with dealing with the five creditors on the standstill agreement."

This is Children's Drama isn't? You know, where the looming clash or disaster is made so obvious that children can shout out: watch out Mr ..." We can see where this is going can't we?

Watch out Mr Anderson!!!! You'll fall on your backside when Korda Mentha pull away that chair you believe is still behind you!!! (All Korda Mentha need to do is say their advice wass based on the information provided to them. You know, and that info didn't include the PIF shennigans.)

Unless of course Korda Mentha knew about the alleged back dated documents. Or worse, instructed their creation.

Could PIF be Korda Mentha's undoing? There's well over $100m in the OCV kitty to go to court to find out. My vote: fight fiight fight fight. GO PTQ. GO YOU GOOD THING.

'The court was told that Korda Mentha was appointed on January 18 to address solvency issues and that the board had charged them with dealing with the five creditors on the standstill agreement'

The moment of truth Duped!!(hopefully) Mike Korda then met with Chris Scott and his advisor Jenny Hutson eight days later. A magic wand is waved, VOILA!! Chris Scott is subsequently appointed to the board and his 'advisor' Jenny Hutson is handed the PIF on a plate to save it from imminent collapse along with several millions of $$ for immediate operating expenses.

(once pristine white undies could well now be looking a tad stained)Seamisty

http://archive.traveldaily.com.au/2008/Feb08/td150208.pdf

Fri 15 Feb 08 Page 2

Stella sale to be stymied

UNCERTAINTY about the future

of Stella Travel looks set to

continue, with action by former

S8 chief Chris Scott to throw a

spanner in the works of the

planned sale of the company.

Scott, who sold S8 to MFS for a

personal stake worth about

$300m in MFS shares, has seen his

wealth shattered by the

plummeting MFS financial position.

He’s claiming the sale of Stella

is the ‘scandal of the year’, with

the Financial Review saying he

plans to call an Extraordinary

General Meeting of MFS next

month to put a stop to the deal.

“Jenny Hutson is acting as my

adviser,” he said, claiming to

have identified individuals and

institutions who together control

52% of the company to back the

move to block the sale.

Scott says that on 26 Jan he

held talks with insolvency expert

Mark Korda and MFS ceo Craig

White about rising capital to save

the firm, and “the next thing we

know they have sold Stella.

“We are hopping mad about

this,” he said.

Agree with you Duped. I think that we are at last approaching a period of very interesting statements being made by various parties. If only these could lead to our receiving some money back!

Hi Unitholders and other interested parties.My name is Michael Pakula and I am the Chairman of ALF PIF Finance Limited.
I feel that it is time for those interested parties to hear from someone who is actually involved in the bid, rather than rely on speculation and innuendo.
We are very committed to making both the bid work and the investment work.
As a sign of that commitment and what we feel is the need for some clarity and certainty for unitholders, we have released the below media announcement, which we hope is self explanatory.
My contact details are below and I am making myself available to answer questions and hopefully tell you we are real people with a real intention.

You can also see a 'pretty version' of the announcement on our website alfpif.com.au

MEDIA RELEASE

20th July 2010

Re: ALF PIF FINANCE LIMITED’s Takeover for all the Units in the Premium
Income Fund dated 8th July 2010 (the offer).

ALF’s Intention to Distribute all Net Funds Received From $38M Wollongong Sale

ALF PIF Finance Limited (ALF) refers to the announcement of Wellington Capital
Limited on 18th November 2009 in relation to the sale of the property at 60 -62 Harbour Street, Wollongong (“the Wollongong property”) for $38million.

Furthermore, ALF refers to the announcement of Wellington Capital on 18th May 2010,which refers to the completion of the Icon Port project in Port Macquarie. (“the Port Macquarie property”).

ALF wishes to provide certainty to current Premium Income Fund (PIF) Unitholders regarding the use of the net funds received from the sale of PIF’s interest in the Wollongong Property and the Port Macquarie Property (“the properties”).

ALF is pleased to announce that if it achieves compulsory acquisition pursuant to the Corporations Act (Cth) 2001 and accordingly can access the proceeds of sale of the properties, and subject to the sale of properties completing, then ALF WILL distribute the entire net proceeds of the sale of the properties to Unitholders, by way of redemption of the redeemable preference shares issued pursuant to the offer.

This redemption will provide Unitholders with at least 50 cents per redeemable preference share, which equates to at least 5 cents per existing PIF unit.

Mr Michael Pakula, Chairman of ALF, commented as follows:

“The clear and stated intention of ALF is to redeem the preference shares issued pursuant to the offer as soon as possible. To this effect ALF will pay out the entire net proceeds of the sale of the properties, if the sales of the properties complete and compulsory acquisition occurs.
This decision by the Board of ALF is consistent with ALF’s desire to pay out the Unitholders $0.15 per existing PIF unit (by way of redemption) as soon as possible without holding back funds from Unitholders.
Unitholders should support the offer and return their acceptance forms without delay”.

For more information Contact:

ALF OFFER INFORMATION LINE: 1300 660 106

Mr Michael Pakula (Chairman) : 0425-284-546 or
email:michael@alfpif.com.au

Well Mr Pakula, that announcement should put the cat amongst the pigeons. I bet now the next PIF investor update will be on time when it is due for a change. I was predicting it would contain some reference to the nearly 2 years behind scheduled 3 cent PIF promised distribution being payable sometime after the ALF PIF bidders statement acceptance due date had expired, hoping to keep PIF investors in the WELLINGTON CAPITAL stable which contains a near empty trough and a extremely large pile of horse/cow ****!!!

Interesting but unfortunately costly times for PIF investors.

Seamisty

"ALF is pleased to announce that if it achieves compulsory acquisition pursuant to the Corporations Act (Cth) 2001 and accordingly can access the proceeds of sale of the properties, and subject to the sale of properties completing, then ALF WILL distribute the entire net proceeds of the sale of the properties to Unitholders, by way of redemption of the redeemable preference shares issued pursuant to the offer.

This redemption will provide Unitholders with at least 50 cents per redeemable preference share, which equates to at least 5 cents per existing PIF unit. "

Doesn't that mean that they are offering us our own money for something that is currently worthless?

I didn't realise that "Hey Hey it's Saturday" was on two nights running!

JohnH said:

"ALF is pleased to announce that if it achieves compulsory acquisition pursuant to the Corporations Act (Cth) 2001 and accordingly can access the proceeds of sale of the properties, and subject to the sale of properties completing, then ALF WILL distribute the entire net proceeds of the sale of the properties to Unitholders, by way of redemption of the redeemable preference shares issued pursuant to the offer.

This redemption will provide Unitholders with at least 50 cents per redeemable preference share, which equates to at least 5 cents per existing PIF unit. "

Doesn't that mean that they are offering us our own money for something that is currently worthless?

I didn't realise that "Hey Hey it's Saturday" was on two nights running!

Click to expand...

Does this demonstarte JohnH that ALF PIF is cash strapped?? Offering us our own money to take control of our own assets? I would think that if ALF PIF was any sort of a going concern with money behind them that they would be buying anything under 15 cents on offer on the NSX?

Seamisty

http://www.nsxa.com.au/ftp/news/021722990.PDF

They now have 0.16% of the units Seamisty!!! They probably have got that from their offer as it would have cost them at least $80k if they had been buying on the NSX - and that's a lot of pairs of french knickers!!!

JohnH said:

http://www.nsxa.com.au/ftp/news/021722990.PDF

They now have 0.16% of the units Seamisty!!!

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Chickenfeed JohnH and would be an interesting hypothetical scenario if ALF PIF aquire a few million PIF units and some other possible suitor comes on the scene with a better offer, what will ALF PIF do vote wise? Will they renege on those who take up the offer and bow out or still hold an interest in the PIF?

Seamisty

It seems that the 2nd wave of invaders has infiltrated; first it was Big Jim who has either gone to ground or been banned and now it's his offsider!

How gullible do they think we are? We've already been sucked in twice (once by MFS and once by WC) ...but no more! I'll await outcomes of the court actions, thank you very much.

Cookie1

The prices on the Icon Apartments in Port Macquarie were $650,000 to $1.2 million originally. For the last few weeks prices have been advertised from $595,000 to $1.2 million, a reduction of $55,000 on the lower end (which would be the 2 x townhouses). Obviously the penthouses at $1.2m haven't been reduced; perhaps I'll go along to the Open for Inspection on Saturday and check on progress of sales.

It would be nice to know what kind of a deal JH did with the contractor that finished the development....

Cookie1 said:

It seems that the 2nd wave of invaders has infiltrated; first it was Big Jim who has either gone to ground or been banned and now it's his offsider!

How gullible do they think we are? We've already been sucked in twice (once by MFS and once by WC) ...but no more! I'll await outcomes of the court actions, thank you very much.

Cookie1

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Unfortunately Cookie its not the reformed gullible being targeted here, its the vunerable who are so totally demoralised and financially crippled that they simply cannot survive any longer on the empty promises from Jenny Hutson and Wellington Capital. They are looking at the 0.067 offered on the NSX we had to have, thanks to Jenny Hutson and her wisdom of offering this only exit strategy since her promised buy back scheme of 45 cents was another crock of **** as opposed to a possible 15 cents per unit from ALF PIF. 31 pages from Wellington Capital target statement saying litttle apart from REJECT REJECT REJECT with no apparent reason as to why WC was a better alternative just proves who the real idiots are, so WC staff, if the discoloured undies are in your size, us gullibles will probablly have enough intellect to match them to a holes that they fit!!.

Seamisty

seamisty said:

Chickenfeed JohnH and would be an interesting hypothetical scenario if ALF PIF aquire a few million PIF units and some other possible suitor comes on the scene with a better offer, what will ALF PIF do vote wise? Will they renege on those who take up the offer and bow out or still hold an interest in the PIF?

Seamisty

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That was my point Seamisty........... we have members of this group who have individual holdings twice the size of Alfie's achievement!!

http://www.smh.com.au/business/mfs-adviser-had-benefit-of-inside-knowledge-20100722-10n2x.html
MFS adviser had benefit of inside knowledge

Today's SMH headline "MFS adviser had benefit of inside knowledge" is certainly a sign that many questions we have been asking for ages will soon be heard on a public scale.

seamisty said:

http://www.smh.com.au/business/mfs-adviser-had-benefit-of-inside-knowledge-20100722-10n2x.html
MFS adviser had benefit of inside knowledge

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From that article:" ... Mr Thompson said Ms Hutson also knew that Mallesons were insisting upon a change of responsible entity of PIF and were threatening to appoint a receiver if that did not occur. He asked Mr Anderson if Wellington Capital's move would have been informed by that.''Yes, I'm sure she had the benefit of that knowledge,'' Mr Anderson said."

Well I wonder if the integrity sensitive ASIC will now turn up on the scene of the WC acquisition of PIF and that EGM hustle in 2008.

Using last time as a bench mark it'll be early next year. I.e. ASIC moved in late October 2009 despite the Class Action being filed in May 09 and McMurdo's decision of 31Jul09 at [141] noting "In particular there is the case pleaded by Wellington Investment Management Ltd (“WIM”) arising out of what it says was the misappropriation of funds of $130 million in November 2007."

ASIC hasn't moved on the WC acquisition of PIF despite McMurdo noting in that same decision at [152] "At present the argument goes no higher than a suggestion that a liquidator would wish to investigate such a case. I accept that a liquidator would wish to do so. On the present evidence the merits of that case cannot be reliably assessed."

I'm beginning to seriously ask myself the question about Wellington Capital: Front or Flop?

This Jones Lang Lasalle listing is still all I have been able to find re the marketing of the Kooralbyn Resort which I understand owes us $40m. Anyone else find anything yet?

http://www.latestproperty.com.au/magazine/Hotels-and-Leisure/search/true/archived/1/section/For%20Sale/page/5/id/107/

I mean really, is that the best you can do Jones Lang Lasalle? Are you satisfied with this WC? You did state on 11 December 2008 "Marketing campaign commenced with 3 agents". Is this what you call a 'campaign'.

YOU CAN'T EVEN SEE THE BUILDING in the photos. Why?

Then there's this http://rammedearth.davis.net.au/kooralbyn.htm. Seems someone else thinks Kooralbyn's merits have been played down.

and don't forget this in the Courier Mail

http://www.couriermail.com.au/prope...sort-left-to-rot/story-e6frequ6-1225866307228

I can’t even find the Kooralbyn resort through JLL’s own website. WC told us on 30April 2009 that “[FONT=&quot]A sales campaign commenced on 4 April 2009 and has seen 11 of the security properties in the Fund’s possession taken to market by nationally recognised agents Jones Lang LaSalle, Ray White, and Colliers International.[/FONT]”

I can’t find Kooralbyn through either Ray White or Colliers International’s websites either. Has WC given up trying to sell Kooralbyn? Why? Ray White even say they have the adjoining property listed, all 1000+ hectares of it.

As for the Main Beach Parade property 'Midwaters'. THERE WASN'T EVEN A FOR SALE SIGN ON SITE 6 weeks ago. Isn't that odd?