Wellington Capital PIF/Octaviar (MFS) PIF

Re: Octaviar MFS Premium Income Fund PIF

Welcome aboard akernst, Here is an e-mail address for you to contact and register your interest: breaker1@aapt.net.au cheers, seamisty

Re: Octaviar MFS Premium Income Fund PIF

Tuart in reply to your query regarding the $50 million support facility it is stated in the PDS:::The MFS Support Facility is a contractual arrangement between MFSIM and MFS Limited pursuant to which MFS Limited has agreed to provide callable funds to MFSIM in order to allow MFSIM to: (a) meet any shortfall in the target distributions of the Fund; and (b) meet any expenses, so HELLO, where is it? Cheers, Seamisty

Re: Octaviar MFS Premium Income Fund PIF

Things have really taken a turn for the worse and i suggest we may be facing a whole new ball game if the Queensland public Trustee can get it hands on our money . We need to take immediate action with a letter to ASIC to determine what protection their is for investors in this situation

Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations: 131 637
E-mail: mail@octaviar.com.au
Website: www.octaviar.com.au
Telephone: 1300 787 650
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
ASX Announcement
_______________________
Creditor Update
5 June 2008
As previously announced the Group needs to reach an accommodation with its large unsecured
creditors such that the orderly realisation of the investment in the Stella Group can occur within the
same timeframe as the amounts owing to these creditors become due and payable.
This is an update to the announcement dated 26 May 2008.
Winding up applications - PTQ
In our announcement dated 26 May 2008 we advised that the Public Trustee of Queensland (PTQ),
who is the trustee for those investors who hold the listed notes (ASX code: OCVG), had asserted in a
notice of 23 May 2008 to Octaviar Investment Notes Limited (OIN) that an event of default had
occurred and declaring that the face value of the notes and interest, together totalling approximately
$351 million, was due and payable on 5 June 2008. OIN denies that the notice is valid. Attempts to
arrange discussions with the PTQ regarding their notice of 23 May 2008 have not yet been successful.
Yesterday afternoon, 4 June 2008, the PTQ filed separate applications in the Supreme Court of
Queensland seeking winding up orders in relation to the following companies:
• Octaviar Limited
• Octaviar Investment Notes Limited
• Octaviar Investment Bonds Limited
• Octaviar Financial Services Limited
We are currently considering the applications filed yesterday and hope to discuss the applications with
the PTQ prior to any court hearing. We also continue our separate discussions with some of the major
holders of the OCVG notes.
Challenger Legal Action
Discussions continue with Challenger Managed Investments Limited but no resolution had yet been
reached.
Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations: 131 637
E-mail: mail@octaviar.com.au
Website: www.octaviar.com.au
Telephone: 1300 787 650
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
Demand by NAB
The National Australia Bank (NAB) demand on Octaviar Limited under the guarantee currently
remains unsatisfied.
The Living and Leisure Group (ASX code: LLA), which is the borrower under the NAB facility,
announced on 2 June 2008 that it had delivered to NAB a conditional term sheet for new senior
financing facilities from another bank. LLA also announced that it had significantly advanced its
Rights Offer documentation and other matters necessary for the capital restructuring which would
allow the repayment of the NAB facility. The repayment of the NAB facility would end Octaviar’s
obligations to NAB under the guarantee.
OPI Pacific Finance Limited
As previously announced, OPI Pacific Finance Limited has entered into a moratorium with its
investors. During the week ended 30 May 2008 the first distribution was made to those investors under
the moratorium.
Octaviar Premium Income Fund
Discussions with the Responsible Entity of the fund continue regarding an agreement on the obligations
the Group has to the fund.
* * * *
There continues to be uncertainty as to whether an accommodation can be achieved with the major
creditors.
David Anderson
Company Secretary

Re: Octaviar MFS Premium Income Fund PIF

It does look like Octaviar are dying.

Re: Octaviar MFS Premium Income Fund PIF

Creditor seeks to liquidate Octaviar

June 5, 2008 - 1:26PM

Octaviar, formerly known as MFS, said the Public Trustee of Queensland filed applications with the Supreme Court of Queensland seeking to liquidate the company and three of its units.

Octaviar continues to dispute the Public Trustee's claim that Octaviar Investment Notes is in default on $351 million in bonds and interest, the Southport, Queensland state-based company said in a statement to the Australian stock exchange.

The company has failed in attempts to discuss the matter with Public Trustees since a default notice was filed May 23, Octaviar said.

The Public Trustee ''is seeking winding up orders in relation to'' Octaviar, Octaviar Investment Notes, Octaviar Investment Bonds and Octaviar Financial Services, according to the statement.

Octaviar is also in discussions with Challenger Management Investments about immediate repayment of $100 million in bonds and is holding talks with National Australia Bank on a $40 million guarantee that the bank is seeking to have paid.

Bloomberg
http://business.theage.com.au/creditor-seeks-to-liquidate-octaviar-20080605-2m4r.html

Re: Octaviar MFS Premium Income Fund PIF

Do we know what happens to the PIF if Octaviar goes down? Can Octaviar’s creditors get their hands on money in the fund?

Thanks,
Dora

Re: Octaviar MFS Premium Income Fund PIF

So the creditor onslaught is in full charge:
Challenger has initiated court proceedings to get its $100M back.
NAB has demanded payment of its $40M
Public Trustee Qld has now initiated court proceedings to get the $350M for its Note Holders

Can Perpetual Nominees Ltd, custodian for the PIF assets, do anything for the PIF investors? PDS states that PNL "are not responsible for protecting your interests". But can PNL refuse to hand over assets to MFSIM if MFSIM is breaking the law or if the RE is illegally transfered to a new entity?

Unfortunately the $50M MFS Support Facility is "limited and is not a guarantee" so while JH says she will actively pursue the $50M I don't hold much hope. (May already have been drawn down to zip anyway.)

But does PNL have any duty or obligation to NOT hand assets over to MFSIM in certain circumstances? Or are unit holders completely unprotected against MFSIM?

PS: Guaranteed we'll hear any new RE say they can't do anything about the errors of the previous RE. Watch.

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:

Do we know what happens to the PIF if Octaviar goes down? Can Octaviar’s creditors get their hands on money in the fund?

Thanks,
Dora

Click to expand...

My understanding: technically no. But creditors may be able to get their hands on MFSIM which manages the fund, before WC. Worst of all is that PIF has unsecured loans with and units in related entities which PIF may end up kissing goodbye. According to my calculations based on the March Update this was up to 13.5% of the remaining PIF assets. So if this all had evaporated before the end of March the units were worth 77.335 cents each ($869.4M minus $168M minus 13.5% of $869.4M)/755.2M units.

Re: Octaviar MFS Premium Income Fund PIF

Duped

The companies that are subject to potential winding up orders do not include the RE (manager) of the PIF.

OCV owns the shares in the manager and has granted an option to Wellington Capital for the them to acquire the shares.

If OCV has an adminstrator appointed to it, it does not also force the manager into administration.

The adminstrators may try to unwind the option but I assume WC will proceed to acquire this seperate legal entity as their is no upfront consideration.

Your custodian Perpetual is there for precisely events like this so that PIF assets are recognised as having no relationship to OCV and its problems and are isolated.

In the event of OCV going into administration the RE which I assume would now be owned by Wellington would on your behalf be a 50 million unsecured creditor of OCV. It would also continue to operate normally !! as it has its own board and I am sure is still drawing fees.

In regards to a new RE if investors chose to replace existing RE of course they cannot be held accountable for the previous managers mistakes.

In this case however where the company acting as RE continues and you have had a change of directors and only potentially change in ownership of the manager itself it remains a legal entity that can be held accountable.

It may have some directors insurance policies worth pursuing if wrong doing can be proved. It would not have a large amount of assets in its own right. I think ASIC requirements are $500,000 NTA.

Re: Octaviar MFS Premium Income Fund PIF

Thanks for that Tuart, I was just thinking 'where is tuart when we need him' LOL!!! You just answered one of my questions I was going to post. Some sort of assurance from WC regarding the security of the PIF would be nice, but alas, looks as though we shall remain mushrooms for the time being. Regards, Seamisty:hide:

Re: Octaviar MFS Premium Income Fund PIF

Seamisty

I am sure Wellington would be aware of this forum and feeling the pressure to get an update out.

They have to sell themselves to investors on their independence from OCV and ability to restore income and maximise returns or else unitholders will seek change.

For investors to round up the magic 100 the press needs to be in the more widely read newspapers. I wonder if there are financial planning groups that could be contacted. I also wonder what the views of OCV chairman is as I think his FP business has about 50 million of clients funds in. Not sure which side he would be on in a fight representing OCV shareholders versus PIF investors.

conflicts conflicts everywhere !

Re: Octaviar MFS Premium Income Fund PIF

Tuart.

As a non investor you remain a man of mystery, but one that seems quite informed on OCV, PIF and Wellington Capital and I am sure everyone appreciates your input

Todays media release has certainly got the ball rolling with attracting interest in the action group but I agree more avenues are needed so suggestions would be welcomed - FP's would be a good approach but how do we go about it. I have been talking with a FP today on behalf of one of his clients so will see if he can help in terms of reaching a wider FP audience through some release

I have also been contacted by a journalist wanting to do a story in the Fin Review on anyone who invested in the PIF through a FP so if anyone is willing let me know and I will forward contact details

Re: Octaviar MFS Premium Income Fund PIF

Tuart,

I only have basic knowledge of finance. I looked at PIF & MFSIM with trusting eyes until January. No more.

I've seen nothing that convinces me that OCV Ltd MUST hand over the $50M. The PDS suggests to the contrary: page 13 "Facility is limited and is not a guarantee". I'm looking forward to being wrong.

I agree, OCV owns shares in RE. All of them I believe. Hence, if OCV is wound up these shares, if WC don't take them, are treated as an asset and the administrator decides what happens to the asset. If a creditor has an interest in acquiring that asset they could do a deal with the administrator. Or could this NEVER happen?

My understanding of PNL's role is still: they have to do exactly what the RE tells them to do with the assets, no questions asked. So the ONLY entity looking after the interests of the Unit holders is the RE and the Unit holders themselves. I was just looking for clarification because PTQ has gone into bat for it's Unit Holders.

I know any new RE isn't held accoutable for previous RE's actions. Doesn't mean it won't sting like hel, not if but when, any new RE SHOVES THAT IN OUR FACES the moment the pressure is on them. Watch.

Re: Octaviar MFS Premium Income Fund PIF

Regarding financial planners, Avenue Capital Management may be worth contacting:

“the fact remains that of the $754 million raised by MFS Premium Income Fund, $51 million came from clients of Avenue Capital Management. Avenue itself confirmed that across both PIF Wholesale and Retail funds it was the third largest investor in the funds…

They may not be interested though as:
“One financial planning dealer group with links to MFS/Octavier is Avenue Capital Management. Avenue director Michael Hiscock recently resigned from MFS/Octavier board, and MFS/Octavier deputy chairman, Paul Manka, is also a director of Avenue…. Similarly, MFS chairman-designate, Paul Manka, showed that he can be as conflicted as his fellow board member, simultaneously serving as an Avenue financial planner while also being a director of MFS Diversified, MFS Living and Leisure and MFS itself. “

From: http://www.crikey.com.au/Business/20080401-Avenues-connection-to-troubled-MFS-.html

It may also be beneficial for the group to have a mobile phone number to be contacted on as some investors reading today’s article in The Australian may not have email\internet access.

Re: Octaviar MFS Premium Income Fund PIF

Dear investors,

On a day that I have rceived about 10 new replies from new investors seeking to join our action group my desktop went on the blink..

Those emails are on this desktop hard drive memory, as I have opened them and read them - as I went to reply to the first email, the PC started beeping at me and the screen froze. I am currently taking my PC apart to see what is - I have lubricated the fans and am contemplating changing to an old HD to isolate and see if it is actually in the HD. I now can't even get my desktop to turn the screen on. I will take the HD out and connect to my desktop (via enclosure case) and run a a virus cleaner through it, to see if that fixes it.

I am now working from my laptop - I have set up breaker1@aapt.net.au
on my laptop - at present I am getting incoming emails to my laptop, but can't email out to contact you.[ I will sort this out with AAPT shortly. I have a good internet security system, but I am starting to suspect the remote possibility of sabotage via an email virus.

I don't think I have lost the emails on the desktop HD I do have an external enclosure case and will put the desktop HD in there and plug it into my laptop USB port, but I have had trouble previously trying to access outlook express via enclosures because it goes to the laptop OE instead of the drive (E) OE I am in on the enclosure.

So again, I can get incoming emails - so keep sending them - I will get back to all of you who have sent me emails either late tonight or tomorrow - make no mistake.

Re: Octaviar MFS Premium Income Fund PIF

Hi Duped and others, I asked Ocv about the legality of the $50mill Support Facility in April and received an e-mail back stating ::Hi
OCV has a legally binding contract with OCVIM to pay the Support Facility to PIF.
L&L is a seperate listed company.
Cheers
Hope it was correct information. Cheers, Seamisty

Re: Octaviar MFS Premium Income Fund PIF

I will look into the Financial Planner idea, including Avenue tomorrow.

I will also look into a mobile number (might get a $5 SIM card) + will have a think about posting my personal one (a number of investors have contacted me on it already so probably couldn't hurt)

I have also tried phoning a contact at the PIF today to inquire what the implications are for the PIF if Octaviar goes into liquidation. I will try again tomorrow

Re: Octaviar MFS Premium Income Fund PIF

Hi All,

First time poster
Can someone explain how on earth Wellington Capital managed to wrangle a deal to sell Geo shares worth .40cents for .25 cents, also , If someone could explain how A LOAN to the LLA group was allowed to be Dealt whilst the BOS had complete control of all the funds, yet they have not allowed any distributions.

Can Jenny Hudson seriously garnish any credibility when she tells us its for the benefit of the investors of the PIF that OUR assets and OUR money is being used to prop up other floundering investments.

Maybe I am not looking at the bigger picture, but how does throwing money away help us as investors

MFS PIF took our Money - not Wellington capital. To date Wellington have not issued a single statement to investors of the PIF.

Some kind of legal challenge by the investors is sounding like the best course so far, I for one have heard nothing to answer any of the questions I have.

Cheers

Re: Octaviar MFS Premium Income Fund PIF

zixo

Have you registered your willingness to be part of the action group with Breaker?

Re: Octaviar MFS Premium Income Fund PIF

Rocky1 said:

zixo

Have you registered your willingness to be part of the action group with Breaker?

Click to expand...

Hi Rocky,

Ive Emailed breaker and yet to receive a reply, so I have no idea what's being discussed. Only discovered the Forum in a newspaper article and am going to pass on the site to others who I know that have been screwed by this mess.

I dont know if any politicians have become involved in this debacle.Maybe they should.

I've Learnt that asic are not really worth a mention as they mostly wait to pick up the mess once its been made. they're not exactly proactive.

Cheers