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Wellington Capital PIF/Octaviar (MFS) PIF

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Same here, can i sell a block of land and claim capital loss on my wellington holdings?
 
Can anyone update me on the statis of the sale of Living & Leisure?

How much does it owe us?

How much was it sold for?

What were the terms offered by JH and when can we expect settlement?

From memory, $57m was involved on only $10m deposit with very liberal interest payments. It never seems to be mentioned as an asset along with the various properties on offer.

Am I missing something?

Dexter.
 
Sorry all, I have been away and extremely busy. What is going on? PIN is in a trading halt and WC has issued the following NSX announcement::http://www.nsxa.com.au/ftp/news/021723982.PDF
Placement and Non-Renounceable Rights Issue
Wellington Capital Limited as responsible entity of the Premium Income Fund, is pleased to announce:
 a Placement of units at 10 cents per unit to raise $11.3 million, and
 a non-renounceable Rights Issue to eligible Unitholders on the basis of one new unit for every three units
held, at an issue price of 10 cents per unit to raise up to $22.6 million.
The Rights Issue will be available to all eligible Unitholders who hold units on 24 May 2011 (Record Date).
Units issued pursuant to both the Placement and the Rights Issue will rank equally with other units on issue.
The purpose of the Placement and the Rights Issue is to raise up to $33.9 million.
A proposed timetable for the Rights Issue is set out in the table below:
Date Event
6 May 2011 Announce Rights Issue
24 May 2011 Record Date
27 May 2011 Despatch of Information Booklet, and Entitlement & Acceptance Form
17 June 2011 Rights Issue closes (5.00pm)
20 June 2011 Premium Income Fund notifies NSX of subscriptions
22 June 2011 Allotment of new units
24 June 2011 Trading of new units expected to commence on NSX
24 June 2011 Despatch of holding statements in relation to new units
25 August 2011 Date by which shortfall of new units may be placed
All dates and times are indicative only and are subject to change. Wellington Capital Limited as responsible
entity of the Premium Income Fund reserves the right to vary these dates and times without prior notice,
including the right to close the offer early, withdraw the offer or accept late applications.
Capital structure
The capital structure of the Fund following the issue of new units, assuming the maximum number of units is
issued under the Placement and Rights Issue, will be as follows:
Units on issue as at 5 May 2011 755,032,768
Placement units 113,000,000
New units to be issued under Rights Issue 251,677,589
Total units on issue after Placement and Rights Issue 1,119,710,357

The new units will rank equally in all respects with the Fund’s existing units. If an eligible Unitholder’s entitlement results in a fraction of a new unit, the Unitholder’s entitlement will be rounded up to the nearest whole number.
There will be no deferred settlement trading in respect of the new units to be issued pursuant to the Rights Issue. Trading in the new units is expected to commence on 24 June 2011. An application for quotation of the new units will be lodged with the National Stock Exchange separately.
Jenny Hutson, Managing Director of Wellington Capital Limited, said,
‘My aim has been to ensure that the Fund can structure arrangements to maximise the value of its assets without the need for debt. A number of current assets require capital to optimise their net realisable value. There are three land based projects which will be prioritised. These are located in the Townsville, Hunter Valley and Gold Coast areas.
‘This capital raising ensures new equity of at least $11.3 million, with current Unitholders also having the opportunity to participate on the same terms as new external unitholders. The capital will enable a number of the Fund’s smaller assets to be finalised and sold. I am pleased to have new unitholder interest in the Fund. The new capital will enable the Fund to fast-track the next phase.
The strategy announced on 30 March 2011 of optimising the current assets, selling them and returning the net capital to Unitholders, remains unchanged. Over 50% of the assets of the Fund will be taken to the market this year.’

Whats the old nursery rhyme? This piggy went to market? HELLO? Why now? Nearly 3 years of snouts in the trough, and oh I get it, the troughs nearly empty!! When was the last time PIF units traded at 10 cents under Wellington Capital management?? Too little too late me thinks. Interestingly I note that Print Mail Logistics also spewed out a few more shares recently to raise capital for operating expenses.
I look forward to having more time to dig a bit deeper. Any comments? Cheers, Seamisty
 
Hi Dexter, You are right, there has been very little information re LLA.The following is a timeline of events compiled by another PIF investor in relation to Living and Leisure just for the record for those interested:

15 March 2007 – LLA state in their 30 June 2007 financial report that MFS Limited granted an unsecured facility up to $65mill to LLA. LLA later (30 June 2008) report this as having been a PIF facility.
30 June 2007 – The PIF 30 June 2007 Financial Report says there were no loans to LLA as at the 30 June 2007. The LLA financial reports show $50,178,000 was lent to LLA by the PIF as part of the facility granted on 15 March 2007. The WC June 2008 financial report shows $8,348,000 lent to LLA as at 30 June 2007.
31 Dec 2007 - As at 31 Dec 2007 the PIF had lent $58 million to LLA which was due 31 March 2008. The 31 Dec 07 report shows $10m was advanced to LLA during Jan 08 and 14 March 08.
21 Jan 2008 - Michael King resigns as director of LLA and there is a trading halt at request of LLA
08 Feb 2008 - Marshall Vann resigns as director of LLA.
14 March 2008 – The 31 Dec 07 report shows $10m was advanced to LLA during the period between Jan 08 and 14 March 08. The half year report for 31 Dec 2007 dated 14 March states: “During the period to 31 Dec 2007, unsecured loan facilities totally $67 m were in place with MFS LLA. As at 31 Dec 2007, almost $58m (June 07: $Nil) of the facility was drawn down and were due for repayment on 31 March 2008. As at the date of this report the full $67m of the loan facilities has been drawn down. In Feb 2008, the maturity of the loan facilities was extended to 30 May 2008 while MFS LLA Group actively seek to see assets..” The LLA financial report for 31 Dec 2007 states a related entity provided an unsecured loan facility on 15 March 2007 and shows $50,178,000 drawn at June 2007. The MFS report says $Nil was drawn at June 2007.
31 March 2008 - MFS LLA name changed to LLA. ASX code change from MPY to LLA.
31 March 2008 - LLA loans from PIF mature on 31 March 2008, MFSIM provided an extension of the loan maturity date by two months to 30 May 2008.
30 April 2008 – LLA states: LLA owes PIF $71 million (“total amount including interest and associated fees”). Total drawn debt for LLA before recapitalisation $199.8 million (after $132.3 million)
30 May 2008 - The LLA loans mature on 30 May 2008 and could not be repaid. The LLA senior secured debt facility totalled $127 million with the NAB. LLA 30 June 2008 annual report states PIF Debt at June 2008 is $71 mill. The 31 Dec 07 and 30 June 08 PIF financial reports show $11M was advanced to LLA between 14 March 08 and 30 June 08. The June 08 PIF financial report shows $8 mill more than the LLA report, (probably new Mezz C $8mill the PIF provided LLA as part of the recapitalisation).
16 June 2008 - WC made an agreement with Artic Capital to a replacement and reduction of debt owed by LLA to PIF. The LLA 'Prospectus $100 million Underwritten Rights Offer' states: The PIF unsecured debt is $71 million and “PIF will grant an $8 million Series C cash advance facility to LLA.”
30 June 2008 – The 30 June 2008 PIF Financial report states LLA owes PIF $77.947M which is written down to $27M. WC state in the report (dated Sept 2008) the fund received $10 million from LLA since 30 June 2008.
30 June 2008 – LLA reports state LLA owed PIF $71 mill (this is interest and capital) at the time of the recapitalisation and then WC agreed to give another $8 mill to LLA. PIF would then get back: $10m up front and $18 million interest free for the first two years (with $10 million of this unsecured for the first year).
30 June 2008 The PIF fund entered into a new finance facility with a non-bank financial institution. The Terms of that facility are as follows: Approved facility $20, Drawn $9.4 million, Interest rate 20%, Maturity Date 30 Nov 2008. A fixed and floating charge over all of the assets of the Fund.” During this period that the $9.4 facility was drawn at 20%, the PIF advanced funds of $10.5 million. The LLA recapitalisation required WIM as RE of the PIF to grant LLA a further $8 million in August 2008 (the $8 million Mezzanine C loan was interest free for the first two years until August 2010.
7 July 2008 Jenny Huston said she negotiated the following deal with Packers’ boys (for LLA): $10mil in July, plus $35mil over time. Some of this $35 mil will be generating interest immediately and some won’t generate interest for 1 year (but a higher rate of interest).
06 Aug 2008 - The LLA recapitalisation completed. As part of the recapitalisation WIM as RE of the PIF is to grant LLA an $8 million mezzanine loan (interest free for 2 years, thereafter BBSY plus 7.0% margin). The PIF will receive $10 million upfront and then another $18 million over time (interest free for 2 years, thereafter BBSY plus 7.0% margin)
26 Sept 2008 – “Arctic Capital Limited acquired the entire issued capital of the RE LLA from Octaviar Financial Services Pty Ltd."
30 Sept 2008 - between July 2008 and 30 Sept 2008 WC state the PIF received $10 million from LLA and valued the LLA debt at $18 million. It is not mentioned that $8 million was advanced to LLA
30 June 2009 - LLA debt valued at $18M down from $27 million in the PIF Annual Report. WC state they received $10 million from LLA between July 2008 and Sept 2008 (same time they were to provide an $8 million loan to LLA as part of the recapitalisation).

I have nothing since. Perhaps we will see some sort of compensation from the Class Action in relation to this considering the original loans granted from the PIF by previous MFS/OCV directors were 'related party transactions' and were not reported as such by the auditors or compliance committee. Seamisty
 
Thank you Seamisty for your excellent reply re L.L.A.

This is hardly the type of first mortgage investment we beleived "our hard earned" was buying into.

At a PIF investor luncheon on the Gold Coast late in 2007 I specifically asked the Compliance Manager, Mike Skepper (ex ASIC) if we had any involvement with related funds and was told "definately not".

I must have been a little suspicious at that time as they were desperately pushing unit holders to invest in L.L.A. and Diversified Property Trust.

Where are ASIC when you need them?

Bring on the Class Action!
 
Is it any surprise that investors are anything BUT excited about this Capital Raising exercise? Why? Because you would have to be suspicious, in my opinion especially with Wellington Capitals performance to date and all the pending legal drama associated with not only the PIF but with G8 education now as well.
My information is that Cherie Hearts has terminated their agreement with G8 and have taken back legal rights to all the centres due to G8 having breached a number of clauses in the contract.
Also there are CPIB, ACRA and several other police investigations going on in regards to this case and Chris Scott is presently undergoing questioning.

Wow, if this information is indeed correct, the ASX has not been notified and G8 continue to include potential revenue raised from these centres in their profit statements, while previously maintaining that this claim was 'beyond remote' in substance?

I am also of the understanding that several unhappy franchisees who have been novated over to G8 are acting/have acted to terminate their Franchise Agreements!!

All of this, plus the ongoing Forest Resort legal action which WC still maintain is not substantive and nothing more than 'baseless'?

As I have said on here before, I have been misinformed on several occasions previously by Wellington Capital staff and do not consider that they are to be trusted and strongly suspect that the 'Capital Raising' will in all probability be proved to be in the best interest of WC, NOT the investors!! I hope all will be revealed sooner rather than later!! Seamisty
 

Worries me as well Seamisty. Maybe I'm being cynical but assuming that this offer was subscribed to by WC or their nominees, it would give them 33% voting power for 3% of what we paid for our units.

If they are trying to raise just under $34m to "finish off" the developments, what happened to the income (as you have already pointed out) they have already received in repayments of loans, or interest?

This really sounds as though we are about to be "stiffed" again! JH
 

Thanks Seamisty, for this stunning post-April 1st joke on PIF'ers.
Your own comments sound very much like this lightning bolt
should be graded as a "prop up the un-propable" exercise.
At least the troughers are open about wanting to complete silver plating to their umbilical feed supply line.

So I think I will abstain from diminishing my holding.

Do you like my new avatar?

Regards
 


This is where I've hammered all along.
ASIC must issue directive: limiting new unit issues to their value pegged proportionally to ORIGINAL issue value.
How could it be possible to advance this must-proposition???
Any voting application can not allow mixing of the 2 values and therefore
DISADVANTAGE the true-blues among us.
Tinker type raids must remain out there; in the mines.
ALFie boys should be careful not to rub their hands too gleefully,
lest they scorch them before being able to count the profits.

No cheers, but warm regards as always
 
No man is justified in doing evil on the ground of expedience.
Theodore Roosevelt

EXPEDIENCE = convenient and practical although possibly improper or immoral
 
I hope all mums out there put your worries behind you, enjoy your family and friends and have a wonderful day:70:

Seamisty
 
Singapore regulatory authorities:

The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and public accountants in Singapore. ACRA also plays the role of a facilitator for the development of business entities and the public accountancy profession. http://www.acra.gov.sg/

The Corrupt Practices Investigation Bureau (CPIB) is an independent body which investigates and aims to prevent corruption in the public and private sectors in Singapore. Established in 1952, it derives its powers of investigation from the Prevention of Corruption Act (Chapter 241). The bureau is headed by a director who is directly responsible to the Prime Minister. http://app.cpib.gov.sg/cpib_new/user/default.aspx?pgID=21
 
The first thought that croosed my mind with regard to reading about this rights issue farce was here we go again with another exercise in trough feeding.
Mounting an exercise like this is very costly. There's legals (guess who might be awarded that). There's heaps of printing (we all know who will score that windfall) there's consulting and on and on, whatever JH can dream up.
You don't need to be a rocket scientist to fathom who will pay for all this...the good ol' PIF... Us mugs again!
JH doesn't need to be drawing a percentage fee from our fund when she can keep skimming the cream for herself and her bedfellows as she has from day one.
 
The interests of the original PIF investors and the present RE have diverged so greatly that any optimism on our part in the circumstances would be futile.
 
I wonder if in future you would mind referring to the RE as WC rather than JH. - It is giving me a bit of a complex, and, under the circumstances is probably more appropriate. .. JH
 
Simgrund I love your new avatar! Bumblebee :JH doesn't need to be drawing a percentage fee from our fund when she can keep skimming the cream for herself and her bedfellows as she has from day one.
My sentiments exactly, except that now the cream is gone, the milk is to thin to cover the skimming. Panic stations have been activated by WC!! The new income and associated voting power is not for our benefit is it Jenny? PIf investor knowledge, connections and transparency will be WC's downfall not to mention an army of people with prior JH grievances just waiting to provide evidence against WC. I think the latest :fan that hits the fan will be the straw that breaks the camels back. An RE that blatantly lies on several occasions to secure a vote and then proceeds to crucify the very vunerable investors who supported them has indicated their ignorance and negligence more than once. Wellington Capital, you not only failed PIF investors, you have cost us dearly, along with the other previous directors. PIF investors will investigate all avenues to determine what recourse there is for compensation. Is there a QLD award for the biggest bull**** artist/crook of the year?? HA HA, there is not enough
people available to process the nominated crook candidates!! (or is there??)

Seamisty
 
Mixed bag for troubled funds Colin Kruger
May 9, 2011

http://www.smh.com.au/business/mixed-bag-for-troubled-funds-20110508-1ee7r.html

But the news was more mixed for investors in the MFS-generated disaster, the $750 million Premium Income Fund, who were told a share placement had brought new investors on board for one-tenth of what unit holders originally paid.

For 10 ¢ a unit, new investors will get 15 per cent of the fund at a price far below the 34.5 ¢-a-unit asset backing claimed by the fund's manager, Wellington Capital.

Wellington's managing director Jenny Hutson said a balance had to be found between the fund's asset value and the low price at which it had traded over the past year.

The units last traded on the Newcastle Stock Exchange on Friday at 8.7 ¢.

For Ms Hutson, the $11.3 million raising will provide much-needed capital to accelerate the development of land that PIF now owns as mortgagee in possession.

''We've looked at a range of options; this is the most accretive for investors,'' she said.

The carrot she offered the original PIF investors is that half of the $256 million portfolio of assets in the fund are expected to be put up for sale this year, with 90 per cent of the money raised from the sales expected to be returned to investors.

Ms Hutson is confident the carrying values will be reflected in the final sales price for these properties saying ''realisations to date have been in line with carrying values''.

At present, unitholders have lost two out of every three dollars invested in the fund and received a meagre 2 ¢-a-unit payout since the fund was frozen three years ago.

They will have to decide whether the deal offered to new investors is a good one and opt to follow suit with the one-for-three rights issue offered to them at 10 ¢ a unit.

There is likely to be opportunity for the more rebellious to express any displeasure with the fund's current managers.

Wellington Capital has only recently repulsed an attempted buyout of PIF investors by a mysterious company advised by Alan Bond's former bankruptcy adviser and banned company director, Jim Byrnes.
 
Hi all, There is a new PIN NSX announcement re the issue of units that I am having trouble opening. Can someone else please try in case it is just me? Thanks, Seamisty
 
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