Wellington Capital PIF/Octaviar (MFS) PIF

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Just had a look through th PIF annual report for year to 30 June 2007:

MFS IM paid itself $16Million ($7.7M in 2006 , $4.8M in 2005)
Perpetual was paid $1.27Million
Auditor got $45K
Other costs $897K.


The juicy stuff is at the end in the 'Notes on Financial Statements:'

page 45 - '11 Financial Assets held at fair value through profit or loss' - RELATED entities $37M (i.e 12.5% of the $297M total of this category of assets)

Page 52: 136M units in the PIF were owned by related parties (@ 30 Jun 07)
MFS WholesalePIF owned 75M(61M @30/6/06, 32M @30/6/05, 0M? @30/6/04)
MFS Administration Pty Ltd owned 60M (0M? in 2005)
I can't wait to see the 2008 report to see if THEY got their redemptions before the door was closed on the rest of us.
Were these two entities invented to keep buying PIF units?

Page 53/53:
PIF had $99M invested in/loans to related parties at 30/6/07. ($74M @30/6/06. $137M @30/6/05) Attached is a spreadsheet of collated data on related party transactions for the last 3 annual reports.

I want to know how far the definition of 'related parties' extends. Did PIF invest in/loan to 'unrelated' parties that had substantial holdings in 'related parties.


Can anyone tell me why on page 54 (17 Related Party Transactions (cont)) there are BLANKS (neither a dash or number) for:
Particularly for MFS Property Trust No 7 - received/receivable 2007: BLANK.
How can PWC have signed off on an annual report that had blanks? For such an important document??? What else was blank after they signed off but was subsequently filled in?

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Just had a look through th PIF annual report for year to 30 June 2007:

MFS IM paid itself $16Million ($7.7M in 2006 , $4.8M in 2005)
Perpetual was paid $1.27Million
Auditor got $45K
Other costs $897K.


The juicy stuff is at the end in the 'Notes on Financial Statements:'

page 45 - '11 Financial Assets held at fair value through profit or loss' - RELATED entities $37M (i.e 12.5% of the $297M total of this category of 'assets')

Page 52: 136M units in the PIF were owned by related parties (@ 30 Jun 07)
MFS WholesalePIF owned 75M(61M @30/6/06, 32M @30/6/05, 0M? @30/6/04)
MFS Administration Pty Ltd owned 60M (0M? in 2005)
I can't wait to see the 2008 report to see if THEY got their redemptions before the door was closed on the rest of us.
Were these two entities invented to keep buying PIF units?

Page 53/54:
PIF had $99M invested in/loans to related parties at 30/6/07. ($74M @30/6/06. $137M @30/6/05) These figures don't reflect what PIF funds MFS IM puts through related parties within a year. In 2005 PIF received $100M in repayments and still ended up holding $137M in related party assets/loans. In 2005 PIF received $156M and still ended up holding $74M in related party assets/loans. I note that the Investments & Payments During Year data was dropped from the 2007 annual report.
(I collated this data into a single spreadsheet. If anyone can show me how to remove the stupid Windows meta data on the XLS file that identifies me then I'll post it.)

I want to know how far the definition of 'related parties' extends. Does PIF invest in/loan to 'unrelated' parties that had substantial holdings in 'related parties'.


Can anyone tell me why on page 54 (17 Related Party Transactions (cont)) there are BLANKS (neither a dash or number) for:
Particularly for MFS Property Trust No 7 - received/receivable 2007: BLANK.
How can PWC have signed off on an annual report that had blanks? For such an important document???

 

[Tuart]

Re: Octaviar MFS Premium Income Fund PIF

In response to DoraNBoots indication that WC is unlikely to allow the action group to inspect the books this has enormous implications.

How is WC going to win over investors trust if a large portion of the funds assets are going to be shrouded in secrecy. The solicitor in the work to date on the incorporation of the AG is I understand is including the ability to form a "forensic sub committee" and I believe the right for this committee to inspect and verify books even if this committee entered into confidentiality agreement with WC is fundamental to any long term role for WC as RE.

In the current position the only people PIF investors should trust is other investors.

The other key issues are:
1) WC to stop announcing everything to press ahead of direct communications with investors (rude, egotistical and arrogant)

2) How WC on behalf of PIF proposes to extract maximum value from OCV residual cash and assets. (They will vote I expect on a Deed of Company Arrangements)

3) Is the indicated 3 to 5 year workout to ensure maximum value in the fund to allow existing investments to be maximised or does it involve the reworking of funds as they come out of current investments into new investments and getting growth on new investments. If it is the later then how do you measure WC ability to re-invest funds against any other fund manager.

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Sorry to read that the author of those MFS newsletters can't make it to the Brisbane meeting.

DUPED - some good sleuthing there! The page 53 excerpt is eye-brow raising information.

DORA - We all recall being told early this year that distributions couldn't be paid again until RBOS got off PIF's back. In effect, it was pretty all RBOS' fault that our income stream was cut off. So, that's between 25m-30m of our money frozen to this point. I guess it's already been used up to pay debt. Could it be that we are too compliant in accepting the WC edict that there will be no back-payments made? Why can't there be a retrospective payment? We must contribute urgently to a fund to employ as much legal help as needed.

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

I like Tuart’s point 3. If WC want a 3 year term to gain new investments then why would we not just find a better investment ourselves?

Tuart: Would you mind explaining “Deed of Company Arrangements”. Good to hear the solicitor is looking at the issue of inspecting the books as I feel this is going to take some convincing.

Selciper: I’ve no doubt there will be no retrospective payments. It’s my assumption that any available money had to go to RBOS until they were paid out. Feels like WC are scraping the bottom of the barrel just to pay us 3c per unit by Christmas.

 

[Tuart]

Re: Octaviar MFS Premium Income Fund PIF

Hi DoraNBoots

Octaviar has I understand 5 major creditors and please excuse the numbers if they are out.

PIF 147 million plus 50 million (197 million)
OPI Pacific Finance 290 million
Challenger 100 million
Qld Trustee 340 million
ATO 60 million

The Qld trustee is seeking to appoint a liquidator through the courts which is due to be heard in September.

OCV is trying to negotiate I assume an unoffical scheme with its creditors (x cents in the dollar in full and final settlement of the debts)

They are sitting on about 200 million in cash plus 35% of stella plus other residual assets.

The directors themeselves can volantarily appoint what is known as an Administrator who takes effective control of the company.

The Administrators obligation is to ultimately call a meeting of creditors at which the creditors vote to either:
1) Appoint a liquidator who will sell off all assets and wind up the company.
or

2) Allow the company to enter into a Deed of Company Arrangements (DOCA)

This DOCA could offer x cents in the dollar in full and final settlement of the debts and upon the payment of this the company is returned the control of the directors with all of the above debts wiped out as part of the payment.

DOCA's can be more sophisticated than that and creditors could push for the cash plus the assets through taking equity in OCV or the assets such as Stella placed in a trust for some or all of the creditors.

As the numbers above indicate ignoring ATO a DOCA could be constructed that works best for OCV or for 2 of the above major creditors if they work together.

PIF could end up with some cash and an interest in Stella for example which is why WC must convince investors that they will work for the best deal for PIF and not be swayed by any past relationships.

I hope this helps

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

Thank you Tuart. I wish you were going to be at the WC forum.

I want to thank Mary for volunteering her time! Brisbane AG have taken Mary up on her offer and she has kindly agreed to monitor the Brisbane mailbox.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Hi all. I am not sure if any of you have been following the James Packer Arctic Capital deal for LLA. There was 4 announcements posted on the ASX late this afternoon and it appears the recapitalisation proposal is on track to go ahead. I can't post the announcements but will copy an extract:LLA understands that agreement has been reached on the final commercial terms for the replacement and reduction for the total debt owed by LLA to the PIF by various parties including Arctic Capital.::: Hopefully this will release the Fund from RBOS, in view of these announcements I would expect several media articles to be released regarding this. regards, Seamisty

 

[Tuart]

Re: Octaviar MFS Premium Income Fund PIF

Evening all

I have just done a quick take on the LLA rights issue prospectus and this is what I think is happening

Its in section 2.5 for those who want a read.

PIF debt current $71 million

LLA will end up after its capital raising with
Banking facility reduced using part of capital raising
2nd ranking loan provided by Artic and others for $25 million of which $10 million is repaid to PIF (part of which is to be deferred)
3rd ranking facility of $43 million which comes to PIF (Artic and others forgiving $5 million of this so ends up at $38 million on LLA balance sheet)
4th ranking facility of $8 million provided by PIF

This gets to a total of $61 million so I do not quite understand what has happened to the last $10 million. I see no reference to any shares to be issued but may have missed it.

There is a reference to PIF paying a fee for the arrangement of this restructure and repayment of the PIF debts.

I am not sure if this means that will take a fee out of the $43 million or if you are paying a $10 million fee and this is where the last $10 million is accounted for.


A few blanks need to be filled in by WC on this one.

DoraNBoots about me been at the meeting you need like everyone to treat these forums only as a way to gather information so that investors can make a completely informed decision. You should not be there on the night ready to accept anything but only as another step to getting all of the facts.

There was talk of hiring an investigating accountant to review but the fighting fund must be held back for the legal work required IMO.

I am sure there are 10 members out there with the right skill set to undertake as a team a review of the position with access to the books from WC.

This team could sign a confidentiality agreement but as I keep telling the few investors I talk to directly right now you can only trust your fellow investors, and you need to get to a point where a fellow investor can look you in the eye and tell you the position and this is what we think is the best way forward.

You also want your overall committee to come back with a recommendation on whether WC is the one to undertake the role. The agreement to letting the AG forensic committee undertake review is a fundamental step forward in WC winning trust.

There has been so many experts over this now the group doesnt need to spend another $100k plus on what would be a drawn out process. This is not as complex as the people who want to control your money wish to make it.

Anyway a big week next week so good luck everyone

 

[Mary Lynch]

Re: Octaviar MFS Premium Income Fund PIF

Dora, You embarrass me.

I will be eternally grateful to you, and all the rest of the amazing people who have been digging up all the details so important to us in our way forward in this mess.

I bless the day when I saw Adam Thorne's name in The Australian, and I tracked him down to become an AG member. Up until then I'd written off my MFS investment (of $500K!) ,and all of a sudden I had my hand held by all of you super people.

I am hoping that my fellow retirees, will be mindful of the looming workload that will be upon us next week. Our numbers will swell X10 at least, and there will be prompt action needed.

My guess is that most of our active members AT THIS POINT, are juggling work and family commitments, and, post forums, this is gong to become ALTOGETHER TOO MUCH for many of them.

If the band of retirees who are set to join us next week can be called upon to help, especially in time-consuming tasks, it could lighten the work load considerably for the "activists".

I will do a posting of this nature next week, but in the meantime,how about, as you hand out your flyers, everyone tells incoming retirees that their input ill be enormously appreciated (one way or another).

PS Does anyone remember the lavish morning teas held in early September 2007? In Melbourne, I think it was at The Park Hyatt, where they were truely high flying to say the least. Trying to get more of our cash....lying through their teeth...Guy Hutchins out front! Then, 2 months later, when I called them up to ask for a redemption form to be sent out, Judy Stead told me that if I left my money with them, that I would be eligible for a BONUS!!!! Seeing we had signed a contract to buy an house, I had to decline. My redemption was due 21st Jan., 2 days after the freeze!

 

[mb623]

Re: Octaviar MFS Premium Income Fund PIF

Hi, Could someone please e-mail me a copy of the pds. My email address is mb623@ozemail.com.au
Regards
MB623

 

[akernst]

Re: Octaviar MFS Premium Income Fund PIF

What happened about the Dubai connection.

Didn't someone from MFS go over there and spend some of the PIF funds
or is this incorrect. Is this where the money went and the return will not
appear until the development has been completed over there.

I think one Michael King's mates went over (his name was ?? Adams?).
What has happened to him?

Could it be tied up with the Sunland group, which used to be here on the
Gold Coast in big way, until they went to Dubai and Sydney.

Can someone please enlighten me.

Loves you all.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

What happened about the Dubai connection.

Didn't someone from MFS go over there and spend some of the PIF funds
or is this incorrect. Is this where the money went and the return will not
appear until the development has been completed over there.

I think one Michael King's mates went over (his name was ?? Adams?).
What has happened to him?

Could it be tied up with the Sunland group, which used to be here on the
Gold Coast in big way, until they went to Dubai and Sydney.

Can someone please enlighten me.

Loves you all.

Hi Akernst.It was another MFS subsiduary, MFS International LTD that opened approx middle of 2007 headed by Phillip Adams:quoteMFS International will focus principally on advisory and financial structuring services for M&A transactions, as well as providing an opportunity for local investors to tap into its attractive and innovative funds in Australia::: What a joke!! They would certainly be able to show others the skill of tapping into funds!!! There was some tie up with Sunland, a 50% joint venture I think. I dont recall there being any connection with the PIF.Interestingly though, the Packer family have?had a 13% interest in Sunland. Anyway, I am pretty sure the Dubai MFS office is no longer operating.Phillip Adams is probablly hiding from his creditors under a long white thobe (robe) and wearing a veil instead of the traditional headress!!! Seamisty

 

[breaker1]

Re: Octaviar MFS Premium Income Fund PIF

Last chance call for Hunter Area forum readers to register for the Newcastle PIF Action Group local meeting for tomorrow, 2.30pm, Sunday 6th, at the Joy Cummings Centre top of town Newcastle. We could do with a couple more. Tea & coffee will be provided.

Contact: breaker1@aapt.net.au

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Clearly, investors want to know what was happening with the operations of MSM/Octaviar PIF within that critical 2007-08 period. Already forum members must be disappointed that the CEO/Investment manager during those times will apparently be absent. His presence might have been able to clear up some misunderstandings. Who else is available to tell us the story of the PIF capsize? Is a suitable sidekick free to take his place?

It will be all very well to be told at the forums to concentrate on the future - "let's move forward" sort of stuff. I very much doubt that contributors to this thread will cast aside past events so easily. Inquiring minds are writing the posts on this thread.

The books must be opened to independent scrutiny.

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Sorry, in my last post I should have typed: operations of MFS/Octaviar PIF

 

[2CentsWorth]

Re: Octaviar MFS Premium Income Fund PIF

Well, Queenslanders,
tomorrow is our big day. First into the fray, and then relay the news to as many eager ears as possible.
I wish to thank ALL others, for their tireless efforts, in bringing us to this point so well armed, against a hapless situation, totally foreign to most of us.

Temperance, patience and clearness of purpose for tomorrow, to us all.

Shields up! Mr. Spock.....Asteroids dead ahead.

 

[Jadel]

Re: Octaviar MFS Premium Income Fund PIF

Thanks 2 Cents Worth

I will need Mr. Spock and Warp Shield Factor 10 for Tomorrow

Here I am with my poor old Alzheimer’s ridden brain ,(rapidly losing more grey cells with Bottles of Shiraz Cabernet every night to reduce the stress levels ) practicing my speech for tomorrow

So take pity on me folks

 

[Mary Lynch]

Re: Octaviar MFS Premium Income Fund PIF

Every good wish Jadel.

We will eagerly await the outcome of tomorrow.

 

[zixo]

Re: Octaviar MFS Premium Income Fund PIF

Hi,

Any sydney Investors Interested in handing out flyers on the 9th I have managed to create something which resembles a flyer slip which can make 10 slips to hand out.

I opted for trying to save paper so you have to excuse my lack of computer nouse in trying this on my first attempt.

You'll probably have to cut the slips into 10 but it will be able to make alot with 10 pages of print given the amount of investors attending. perhaps help the environment and possibly help with information on the Action group.

I hope this works out okay