Wellington Capital PIF/Octaviar (MFS) PIF

DoraNBoots · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Those that don’t like old news or negativity should look away…

This is a link to a 7:30 report (on ABC) featuring JH and CS in March. http://www.abc.net.au/7.30/content/2007/s2186788.htm Jenny is the lawyer representing the MFS shareholders doing her best to provide the best outcome from these people whose “lives have truly been destroyed in a financial sense”. Just 4 months ago Jenny was representing the people we are now expecting her to play hard ball with. Some might think she is in a unique position to negotiate for us but I would much prefer an unrelated party be doing this.

We are seeing this as a test for Jenny to prove she is looking out for the PIF over OCV but I fear if she proves not to be looking out for our best interests that she will have got what she wanted in a few weeks and won’t care about the Aug PIF vote.

I don’t have any constructive solutions but would like some reassurance from CW or at least some of the information they’ve promised.

goldfinger38 · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:
Those that don’t like old news or negativity should look away…

This is a link to a 7:30 report (on ABC) featuring JH and CS in March. http://www.abc.net.au/7.30/content/2007/s2186788.htm Jenny is the lawyer representing the MFS shareholders doing her best to provide the best outcome from these people whose “lives have truly been destroyed in a financial sense”. Just 4 months ago Jenny was representing the people we are now expecting her to play hard ball with. Some might think she is in a unique position to negotiate for us but I would much prefer an unrelated party be doing this.

We are seeing this as a test for Jenny to prove she is looking out for the PIF over OCV but I fear if she proves not to be looking out for our best interests that she will have got what she wanted in a few weeks and won’t care about the Aug PIF vote.

I don’t have any constructive solutions but would like some reassurance from CW or at least some of the information they’ve promised.

Hi Dora,

Jennys position in this report appeared to be on the side of the shareholders, not the company and in fact she was instrumental in getting Chris Scott appointed to the board. It definitely didnt appear to favour the MFS board in any way, rembering her links to MFS are through her previous dealings with Chriss Scott. Yes she did assist in the early days with the formation of the Premium Income Fund but that in no way could be held against her at this point in time.

Now she has been placed in the position of making this a good or bad result for us as investors and yes she has to prove to us that she is the person for this job. Lets hope for our sake she performs admirably, up to this point in time I cannot see any reason to not let her have a go given that the liquidation option gives us no opportunity to lessen the pain and recover some of our lost value over time.

She just has to come up with a solution for those that want to exit from the fund without impairing our exposure to the losses already experienced, then we will have a solution for both sides of the investors.

I see they will be mailing out a DVD compilation of the meetings held together with a detailed report of the questions and answers raised at the meetings and hope to have the meeting and voting papers out by mid August, given investors have to be given 21 days notice of a meeting, this will mean the proposed meeting for the vote should be around first week of September.

Jadel · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:
Something that bothers me about Perpetual (and of course MFS and WC) is that they were willing to let MFS and WC tell us that we needed to pay $14,000 for Perpetual to provide a copy of a register. Perpetual knew this fee was being asked on their behalf and knew the law states they must not make a profit when supplying it.

When I asked Perpetual who came up with such a ridiculous number they said that both companies agreed on it but admitted it was not right.

Dora.

AND HE WHO PAYS THE PIPER PLAYS THE TUNE

Tuart · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Good morning everyone

In relation to the OCV offer which seems to be expressed in a manner of take this or OCV will be liquidated.

Even if a liquidator is appointed the law allows a "deed of company arrangements" to be put up by any party including WC which could be on better terms for PIF than is been offered.

As others are pushing for some cash and a share in the upside could be established through a DOCA which appears at the moment to be only offered to the OCV note holders.

It is not choice A versus choice B as Chris Scott is trying to push and WC is in a position to push for a better deal.

Jadel · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

I hope you are correct Tuart , however i see the main problems as angst by the other creditors if she tries to cut a sweetheart deal with Scott.

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:
I think it's worse than that as the "PIF Claim - participation loans" and "Max Yield investment" are considered "Contingent liabilities" which the table says would only return 16.2c \$1.

But I still don't understand why there is such a difference between the 5 major creditors if we were all supposed to be equal.

I'm guessing:
CS has crunched the numbers and come up with the formula to get the most number of votes to keep the company going (to save him from huge losses from his margin loans?) PIF is a single vote - JH. And JH is not the one pushing for an earlier court date, the Note Holders are pushing PTQ (& Challenger?) This weakens their case. The fact that PIF & PAC are getting screwed in the deal and that this should present an insurmountable hurdle to the whole deal will be all but lost when a receiver/magistrate/court is looking at a case between OCV and the note holders.

I see this offer as a desperate move to stay in control. Predicatable move. Predicatably calculated. JH just needs to say no.

There is no way WC should accept this deal. On the one hand JH told us at the BNE forum that by liquidating PIF , the unit holders will miss out on all of the upside. If JH go with this OCV offer, with no options over future growth of OCV/Stella, then she will be contradicting the advice she's giving us unit holders.

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:
Those that don’t like old news or negativity should look away…

This is a link to a 7:30 report (on ABC) featuring JH and CS in March. http://www.abc.net.au/7.30/content/2007/s2186788.htm Jenny is the lawyer representing the MFS shareholders doing her best to provide the best outcome from these people whose “lives have truly been destroyed in a financial sense”. Just 4 months ago Jenny was representing the people we are now expecting her to play hard ball with. Some might think she is in a unique position to negotiate for us but I would much prefer an unrelated party be doing this.

We are seeing this as a test for Jenny to prove she is looking out for the PIF over OCV but I fear if she proves not to be looking out for our best interests that she will have got what she wanted in a few weeks and won’t care about the Aug PIF vote.

I don’t have any constructive solutions but would like some reassurance from CW or at least some of the information they’ve promised.

Excellent research DoraNBoots. So glad you're back - I thought that basher had pushed you away.

I'd like to add that - Yes the OCV shareholders will also lose. But they had something us PIF unit holders didn't have - A VOTE. A vote over the running of OCV Ltd. They had a FAR greater say in the running of OCV Ltd than PIF unit holders. The ONLY action that PIF unit holders had was not to invest/re-invest.

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Jadel said:
Absolutely correct regarding Perpetual (((Trustees ))) !!! role in this affair, my wife telephoned on numerous occasions and was reassured the money could not be touched and was held in trust.

Every time I contact them now .they desperately run the line that they were only a registration service for OCV, and that they had no power whatsoever over the Funds money. In fact they were providing, nothing more than a data base, for a mailing service.

It looks like we were all well and truly conned in a clever scam, that could only have been set up originally by King and Adams and was cunningly designed to give investors confidence that their money was entrusted to an independent body run arms length from the PIF.

The fact of the matter is we were caught in a Sting, worthy of the Robert Redford and Paul Newman Movie. The arrangement with Perpetual was nothing more than an empty shell.

That Perpetual were prepared to put their good name to this misleading and deceptive scheme is beyond belief.

If there is any justice in the world the people behind this underhanded plan will rot in hell

AND they got paid a BOMB to attend to these ADMINISTRATIVE services:

Acording to the PIF Annual reports:
2007 - "Custodian & registry fees $1,266,000"
2006 - "Custodian & registry fees $1,132,000"
2005 - "Custodian & registry fees $1,256,000"

Far as I can tell these amounts are ON TOP OF what MFS IM paid itself. Seems to me that us unit holders were just cattle to be milked by anyone who had a bucket.

Jadel · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Yes Duped

It was only the name OCV were after Perpetual Trustees just like Peackock was hired as a Show Pony for his name

For all that money paid in fees we got something like an imitation Rolex watch

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

breaker1 said:
1] OCV offer to PIF for a quick deal for monies owed
– PIF will accept 22.5c / $1 for its $123.7 million direct and indirect = $27.83M 25.8c = 31.9M

participation loans with PAC, and assign the participation loans to the

Octaviar Group;

– PIF will accept 15c / $1 for its unsecured PAC notes (being $23.6 = $3.54 25.8c = 6.1M
million); and

– PAC will release the Octaviar Group from all other claims including the

damages claim for approximately $270 million;

• PIF: in addition to the above, PIF will:

– accept 22.5c / $1 for its $50 million Support Mechanism claim; = $11.25M 25.8c = 12.9M

– accept 22.5c / $1 related to the Maximum Yield investment ($30 = $6.75M

25.8c = 7.74M
million) and assign this asset to the Octaviar Group;

– accept 22.5c / $1 for its further claim of $5.5 million; and = $1.2M TTL = $50.57M 25.8c TTL = $58.64M
– release the Octaviar Group and PAC from all claims (including the

litigation claim commenced);

Liquidation including Stella and waiting 3-5 years only gets us another $8M over CS's immediate payment offer. Inflation over 3-4 years would pretty much eat that away.

Hang on:
$123.7M + $23.6M + $50M + $30M +$5.5M = $232.8M (Have I double counted anything?)

I think this offer will REDUCE the 45c valuation that we have been given by WC.

JH wrote in her most recent flyer that the difference between the 45c and 65c valuations was the $147.5M claim against OCV. The $50M doesn't seem to be calculated into the 65/45/14c valuations.

So where is the other $36M coming from. Where are those writedowns going to be recorded? From the numbers I've seen this offer by OCV will take another big chunk out of the 45c valuation.

If so, we need to ask for a revaluation of the fund in the light of this offer by OCV.

DoraNBoots · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Duped that's a terrible realisation! I'm thinking WC have included the $50 mil SF and the PAC notes in the current 45 cent valuation. If this is the case our units would be valued at less than 45 cents if WC takes the current OCV offer.

I've left a message on the WC hotline to see if they can clarify this. No idea when they will get back to me.

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

How funny is this: CommSec is spruiking a premium income fund.

Risk Category: DEFENSIVE. (Heard that before)

"
What’s New At CommSec?

Hi Q2 is an income rich property securities fund, designed to deliver a consistent premium income yield for investors.

Real Estate Capital Partners (ReCap) is a boutique fund manager, specialising in the structure and management of innovative property-related funds.

Hi Q2 seeks to optimise opportunities and value in the property market, whilst providing a regular, quarterly income stream.

Why invest in Hi Q2?

Investment portfolio comprising 75% property securities and 25% property security based derivatives.
Income return benchmark of 3.0% above the cash rate.
Hi Q has provided an income distribution since inception of 10.63%*pa.
Regular quarterly income distributions.

Exposure to the listed property securities market, which may offer
some attractive value based investments

Key Features
Minimum Investment: $10,000
Recommended Timeframe: 3-5 years
Income Distribution: Quarterly
Risk category: Defensive
Save on entry fees: 100% rebate on the entry fee is available when you
invest with CommSec Direct Funds
Offer Close Date: 15 October 2008
"

Sound like a familiar story to any other of you unit holders?

Anyone interested

Maybe RECP will be interested in our PIF. Save on the marketing costs.

Mary Lynch · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Just on aother note; There seems to be a question mark around whether the Packer (ski fields etc) deal with Living and Leisure has been absolutely finalised. Can someone re-assure me that it has please!

PIFholder · 21 July 2008

Centrelink - this is good news

I just went into Centrelink to talk to them about my PIF investment and they said that there was a decision about PIF ... got home, got onto the PIF website and found this:

21 July 2008

Unit valuation – Centrelink and Department of Veterans’ Affairs
Jenny Hutson, Chairperson of Wellington Investment Management Limited, the responsible entity for the Premium Income Fund is pleased to advise that Centrelink has issued a nationwide determination broadcast to its offices to ensure that all Centrelink and Department of Veterans’ Affairs branches recognise a unit in the Premium Income Fund at the revised value of 45 cents per unit.
This is a significant outcome for a large number of 10,345 unitholders in the Premium Income Fund who had their distributions and redemptions frozen in early 2008.
Jenny Hutson said ‘Wellington appreciates the prompt assistance that Centrelink has provided in ensuring that the revaluation figure of 45 cents is being communicated to its national network of branch offices, acknowledging that it is of utmost concern to investors to ensure that they receive the benefits to which they are entitled.
I have met with over 4,000 of our 10,385 investors over the past ten days. This is a very positive step forward for those who are enduring financial hardship.’
Wellington is committed to restoring payments to investors, commencing in October 2008, at a minimum of 3 cents per unit for the 6 months ended 31 December 2008. Thereafter, payments will be made quarterly.
The recommencement of payments to investors is reliant upon unitholders voting to continue the Premium Income Fund as a going concern at the upcoming extraordinary general meeting. Information in relation to the
meeting will be posted to unitholders in coming weeks.
Investors with additional questions in relation to their investments should contact the Wellington Hotline on 1300 854 885.

This is seriously good news for me - my pension has been adjusted to show 45 cents instead of a dollar.

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Mary Lynch said:
Just on aother note; There seems to be a question mark around whether the Packer (ski fields etc) deal with Living and Leisure has been absolutely finalised. Can someone re-assure me that it has please!

Closing date for the rights offer is 31 July.

Following is a post of 11 July from another forum 'hot copper'
"I am a little surprised that there is no buyers for the rights LLAR, to be able to pick up shares at 4c is going to look very cheap in the not to distant future. James Packer is willing to buy at 4c AND lend the company money."

LLA Shareholders can sell their entitlements to the rights issue from 9 to 24 July. Commsec shows that no one has bought any of the entitlements. Even at 0.1 cents per entitlement.

Last trade for LLA was 3.8cents

I don't know what happens if all the rights don't get taken up. I.e. if Artic walks away from the deal or it merely means the LLA shareholders equity is diluted and the payments to PIF go ahead as planned.

PIFholder · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Duped said:
Closing date for the rights offer is 31 July.

I don't know what happens if all the rights don't get taken up. I.e. if Artic walks away from the deal or it merely means the LLA shareholders equity is diluted and the payments to PIF go ahead as planned.

I'm sure I read somewhere that the issue is sub-underwritten, so that might give us some hope that the deal goes ahead.

seamisty · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

PIFholder said:
I'm sure I read somewhere that the issue is sub-underwritten, so that might give us some hope that the deal goes ahead.

The offer is fully underwritten by Arctic Les (Ireland) Limited (underwriter) That means any shortfall that is not taken up will be funded by Arctic. There are still conditions that have to be met from LLA, but should go ahead regardless. (I think) Seamisty

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Further to my post #1195 regarding the ReCap Hi Q2 fund.

Duped said:
"
Exposure to the listed property securities market, which may offer
some attractive value based investments
"

I.e. I read this as other investors are firing up to profit out of our suffering. To buy our distressed stocks. This suggests to me that some investment houses believe that property securities are oversold. (The bulk of the risk is still on the investors though, not on the fund managers, so it'll be interesting to see how many investors the Hi Q2 attracts.)

Perhaps they'll buy PIF stock on the NSX.

selciper · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

ABC Four Corners tonight will probably give us a bit of a glimpse of ASIC .

Duped · 21 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Article in the Age about financial planners' commissions.

http://www.theage.com.au/news/planning/cheques-and-balances/2008/07/14/1215887537627.html

Westpoint gets a lot of press. So they lost $300M of investors money.

Sad to say but - We can top that!!!!!!!

Wellington Capital PIF/Octaviar (MFS) PIF

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