Wellington Capital PIF/Octaviar (MFS) PIF

Re: Octaviar MFS Premium Income Fund PIF

Yeah, love 80's music. Chris D B sucked though..I like it a little louder. More like Metallica, Van Halen and Ozzy (most people here wouldn't know these bands). I just play my guitar to chill. I know I should just kick it back..just erks me that there is no logical reasoning to some comments. I know that noone here would really vote for the L word..they just stir, and I give it back..it's in my hard rock nature to.

Re: Octaviar MFS Premium Income Fund PIF

Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations:
E-mail: mail@octaviar.com.au
Website: www.octaviar.com.au
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
Telephone: 1300 787 650
ASX Announcement
_______________________
Creditor Update
8 August 2008
To remain as a going concern Octaviar Limited (ASX code: OCV) must reach an accommodation with
its large creditors so as to align the obligations to those creditors with the realisation of the group’s
assets.
Offers made to Creditors
As previously announced, an offer was made to the holders of listed unsecured notes (ASX code:
OCVG) on 18 July 2008. Pursuant to that offer, if the Trustee and 75% or more of Noteholders agree
to change the terms of the notes, then Noteholders can chose between either a “Cash Now” offer of
between 22.5 cents and 100 cents in the dollar, a secured debt position until 2011 for the full face value
of the notes, or a combination of the two.
Similar offers have now been made to Bondholders and the Responsible Entity of the Premium Income
Fund. An offer has also been made to the Australian Taxation Office. The Company will make a
secured debt offer to OPI Pacific Finance itself and a direct cash offer to individual OPI Pacific
Finance investors as soon as OPI Pacific Finance and its Trustee confirm the offers are within the
Moratorium terms already agreed.
Status and Timetable of Offers
Listed Notes
Noteholders had been asked to respond to the offer by 7pm 11 August 2008 however in response to
recent requests by a number of large Noteholders, including those who have now formed a Steering
Committee, the Company has agreed to delay the close of this voting process to give Noteholders more
time to consider the material provided and to determine their desired course of action. The revised
closing date for the offer is now 4pm 29 August 2008.
At the time of this announcement, the Company has received 184 voting forms indicating a preference
either for or against the proposed suggested amendments to the terms of the notes. The “Yes” votes are
running at more than 95% by number and more than 88% by value. Whilst the responses are more than
a third of the total Noteholders by number, the 20 largest holders account for more than 85% by value
and it is the majority of these large Noteholders who have asked the company to extend the timetable to
allow further time for analysis and consideration of the offer.
Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations:
E-mail: mail@octaviar.com.au
Website: www.octaviar.com.au
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
Telephone: 1300 787 650
Unlisted Bonds
Bondholders have sought an extension of the original 11 August 2008 deadline and the Company has
agreed with them that the timetable will be consistent with that set for the holders of the listed notes.
Premium Income Fund
The Responsible Entity has advised that the cash offer is likely to be accepted, subject to the
acceptance by other creditors of offers put to them.
Australian Taxation Office
The Company has sought a meeting next week with Officers of the ATO to fully explain the offer
being made.
Other Creditor matters
With the successful recapitalisation of the Living and Leisure Australia Group (ASX code: LLA) in
recent days the advance by NAB to LLA guaranteed by the Company has been repaid in full. As aconsequence the NAB no longer has a claim against the Company

Re: Octaviar MFS Premium Income Fund PIF

Hi Seamisty, thanks for the info...but exactly what does that mean for us? I am so confused.... thanks

Re: Octaviar MFS Premium Income Fund PIF

sugar3157 said:

Hi Seamisty, thanks for the info...but exactly what does that mean for us? I am so confused.... thanks

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I agree sugar, Its as clear as mud!!!!!It doesn't actually say, the last call I had from WC I was told that JH was negotiating 22.5cents per unit upwards, so it could mean that she will accept x amount now and participate in some upside at a later date. Any amount received in relation to the Support Facility is already owed to unit holders and she has already stated this would be passed on to us. The PIF is also due to receive $30mill from Arctic Capital in relation to the deal with LLA so hopefully this will help pay down the renegotiated PIF debt that released us from RBOS. I would imagine we will get some sort of an update before the proposed vote deadline, especially if there is some positive news. This is only my opinion, regards Seamisty:hide:

Re: Octaviar MFS Premium Income Fund PIF

If I have a choice between recieving 50M now or a secured debt position over income producing assets with an estimated value of 150M in 3 years, I choose the latter. If all of the 50M was given as a special distribution it would equate to about 0.65 of a cent per unit (or $650 for every $100,000) with no upside, as opposed to three times that figure in 3 years. You would need to get roughly 40% p.a. in order to turn 50M into 150M in three years by any other means!

Boots

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:

If I have a choice between recieving 50M now or a secured debt position over income producing assets with an estimated value of 150M in 3 years, I choose the latter. If all of the 50M was given as a special distribution it would equate to about 0.65 cents per unit (or $650 for every $100,000) with no upside, as opposed to three times that figure in 3 years. You would need to get roughly 40% p.a. in order to turn 50M into 150M in three years by any other means!

Boots

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DoraNBoots only the SF% component of any cash the PIF gets will be distributed and my understanding is that has to by law as the SF was put in place to cover any short fall in distributions. So I am no expert but I would imagine that less than 1/4 of any money recieved would constitute the SF share. JH is not giving that to unit holders out of kindness, she is legally obliged to. Regards, Seamisty

Re: Octaviar MFS Premium Income Fund PIF

Seamisty,
We know that any money from the SF will be a special distribution and any money from the $147 mill claim will add to the unit price. That’s not the point of Boots post. What he was saying is that we would rather get $150 million from OCV over 3 years than take $50 mill now. Unfortunately the "lady in red" (nice one CableGuy!) seems to be happy to take only $50mill from OCV.
Dora

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:

Seamisty,
We know that any money from the SF will be a special distribution and any money from the $147 mill claim will add to the unit price. That’s not the point of Boots post. What he was saying is that we would rather get $150 million from OCV over 3 years than take $50 mill now. Unfortunately "out lady in red" (nice one CableGuy!) seems to be happy to take only $50mill from OCV.
Dora

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OK, sorry Dora, I just haven't interpeted the announcement correctly. Or perhaps if JH is as cosy with CS as some would have us believe, she knows which is the better deal. 0.7% management fee of $50mill now is better than 0.7% of FA in 3 years time! Seamisty

Re: Octaviar MFS Premium Income Fund PIF

Could JH be that dumb and just take $48.5m now and that's it...or does she anticipate huge lawsuits to come in the next couple of years that will mean that we would be in a secured position with everyone else as well as successful litigants ie. shareholders in the IMF action and the many, many other funds that we don't even know about yet that were fleeced by past OCV directors then fighting for 33% of the sale of Stella.

I mean, they are not just going to let OCV sell Stella and split it 5 ways in the appropriate ratio of the listed major creditors within 3 years, I don't think it will be that clean. Maybe it is better to get the cash now..as much as I hate to say that. Just wish she would negotiate MORE. Who knows how she will justify this??

Re: Octaviar MFS Premium Income Fund PIF

CableGuy said:

Javier, Chill dude! If you are so sure of the situation you should just kick back to some Chris De Burgh.

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Lady in Red. Hey Cable Guy, Don't Pay the Ferryman..till (s)he gets us to the other side. That is very clever and funny with that avatar. Nice one LOL LOL LOL!!!!!

Re: Octaviar MFS Premium Income Fund PIF

Javier said:

Yeah, love 80's music. Chris D B sucked though..I like it a little louder. More like Metallica, Van Halen and Ozzy (most people here wouldn't know these bands). I just play my guitar to chill. I know I should just kick it back..just erks me that there is no logical reasoning to some comments. I know that noone here would really vote for the L word..they just stir, and I give it back..it's in my hard rock nature to.

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Well Javier We both have some thing common anyway we both play guitar It sure helps me to relaz ///////

Re: Octaviar MFS Premium Income Fund PIF

Javier said:

Could JH be that dumb and just take $48.5m now and that's it...or does she anticipate huge lawsuits to come in the next couple of years that will mean that we would be in a secured position with everyone else as well as successful litigants ie. shareholders in the IMF action and the many, many other funds that we don't even know about yet that were fleeced by past OCV directors then fighting for 33% of the sale of Stella.

I mean, they are not just going to let OCV sell Stella and split it 5 ways in the appropriate ratio of the listed major creditors within 3 years, I don't think it will be that clean. Maybe it is better to get the cash now..as much as I hate to say that. Just wish she would negotiate MORE. Who knows how she will justify this??

Click to expand...

It's already started Javiar, and three years might just be long enough for ASIC to have started proceedings against former OCV board:::::::Octaviar staff seeks severance pay:::::Fiona Cameron | August 09, 2008
AN Octaviar executive sacked in June has filed a court action seeking $54,353 severance pay from the besieged funds manager.

Nigel Fitzgerald, an internal audit manager for Octaviar until he was retrenched, was kept on staff for nearly six months after the fortunes of the once high-flying tourism and property conglomerate hit the wall in January.

But Octaviar shortchanged him when it laid him off two months ago, according to the statement of claim Mr Fitzgerald has lodged in the District Court of Queensland, alleging breach of contract.

The claim joins a long list of court matters where creditors are seeking a combined total of hundreds of millions of dollars from Octaviar companies.

Mr Fitzgerald started work with Octaviar in August last year on a $260,442 package, made up of $247,313 base salary and $13,129 of superannuation.

He was made redundant on June 8, and filed his claim on July 31.

Octaviar, previously known as MFS Ltd, collapsed in January after it tried to stage a $550 million capital raising.

The company technically is still alive, but only with the support of its lenders. Since January, chairman Andrew Peacock and the majority of the board have resigned, as have most of the executive team.

Only a skeleton staff remains in the Gold Coast offices after the closure of the Melbourne and Sydney operations.

Mr Fitzgerald asserts in his statement of claim that on or around February 11, his employment contract was varied by verbal agreement, and a written variation signed by Octaviar on February 19.

Under the revised contract, Octaviar agreed to provide Mr Fitzgerald with six months' notice of termination or payment in lieu "at the defendant's discretion", according to the claim.

Octaviar gave Mr Fitzgerald two weeks' notice of his redundancy and the equivalent of 14 weeks' pay, "leaving a shortfall of 10 weeks' pay", the claim states.

In addition, according to the claim, Octaviar had miscalculated, setting the payments Mr Fitzgerald did receive on his base salary rather than on his total package.

Mr Fitzgerald said yesterday it was "a relatively straightforward issue".

"I'm obviously disappointed I've got to go through this to get them to pay me, but there's nothing I can do about it other than to proceed the way I am," he said.

Octaviar company secretary David Anderson last night said the matter would be decided by the court and he declined to comment further.

Octaviar's biggest creditor, the Public Trustee of Queensland, has a wind-up claim against the company listed for hearing in the Queensland Supreme Court next month. But the PTQ, representing noteholders owed $351 million, may not proceed with the action and is seeking a noteholders' vote on the issue.

Other Octaviar creditors include OPI Pacific Finance ($246 million), the Australian Taxation Office ($100 million) and Challenger Managed Investments ($100 million).

Re: Octaviar MFS Premium Income Fund PIF

AS per above post:::AN Octaviar executive sacked in June has filed a court action seeking $54,353 severance pay from the besieged funds manager.

Nigel Fitzgerald, an internal audit manager for Octaviar until he was retrenched, was kept on staff for nearly six months after the fortunes of the once high-flying tourism and property conglomerate hit the wall in January.

But Octaviar shortchanged him when it laid him off two months ago, according to the statement of claim Mr Fitzgerald has lodged in the District Court of Queensland, alleging breach of contract.

The claim joins a long list of court matters where creditors are seeking a combined total of hundreds of millions of dollars from Octaviar companies.

Mr Fitzgerald started work with Octaviar in August last year on a $260,442 package, made up of $247,313 base salary and $13,129 of superannuation.

He was made redundant on June 8, and filed his claim on JUL 31::::::What is the role of an 'Audit Manager'? If this guy was audit manager at the time millions started to vanish from the PIF or be exchanged for worthless notes and were not disclosed, can he be held accountable for negligence? This will be just the beginning of much more to come IMO. Seamisty

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

AS per above post:::

He was made redundant on June 8, and filed his claim on JUL 31::::::What is the role of an 'Audit Manager'? If this guy was audit manager at the time millions started to vanish from the PIF or be exchanged for worthless notes and were not disclosed, can he be held accountable for negligence? This will be just the beginning of much more to come IMO. Seamisty

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Seamisty

Part of the answer to your question for the PIF is within the compliance plan as available on the WC web site.

A very interesting document on what should have been done and what obviously was not done for the PIF.

Thanks for your continued research and contribution.

Splitpin.

Re: Octaviar MFS Premium Income Fund PIF

SPLITPIN said:

Seamisty

Part of the answer to your question for the PIF is within the compliance plan as available on the WC web site.

A very interesting document on what should have been done and what obviously was not done for the PIF.

Thanks for your continued research and contribution.

Splitpin.

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Thanks Splitpin, I just quickly read through it, I guess the outcome rests with ASIC (again), I can see why it takes so long for legal action to take place in the case of corporate fraud. I will paste an interesting article concerning ASIC I read yesterday, I feel that at least the spotlight is now focused more strongly as to what has happened to the PIF and other similar investment schemes. Regards, Seamisty::::::::Watchdog bares teeth in crackdown
By Nicola Berkovic | August 08, 2008 08:40am

ASIC has listed areas it will target over the next few months
The move follows months of turbulance on financial markets
More investing news in our Money section
MANAGED investment schemes, credit rating agencies and illegal trading activity face a crackdown by Australia's corporate watchdog, as it responds to investors' concerns over continued market turbulence, The Australian reports.

In a break with previous practice of keeping its warnings general, the Australian Securities and Investment Commission yesterday laid out five specific issues it would target in coming months, in a clear bid to put potential rule breakers on notice before investors are out of pocket.

ASIC commissioner Belinda Gibson said the regulator would focus on listed investment funds and disclosures relating to complicated financial assets, particularly the ones subject to winding up actions.

Ms Gibson, one of three commissioners (with Tony D'Aloisio and Jeremy Cooper) and head of ASIC's Capital Markets taskforce, said it would also work on stamping out illegal trading activities, including market manipulation, insider trading and false rumours.

ASIC last month issued consultation papers on Australia's $42 billion unlisted mortgage fund sector and $32 billion unlisted property scheme sector. It followed the regulator's efforts to improve disclosure to retail investors in the $8 billion unlisted and unrated debenture market, which has seen the collapse of groups such as Westpoint with heavy losses.

Ms Gibson said ASIC was also working with Treasury on a review of credit rating agencies, which had been heavily criticised in the fallout from the sub-prime mortgage market collapse.

ASIC will examine how credit rating agencies operate, their level of diligence and management of conflicts of interest.

"There have been questions raised as to the quality of the ratings process, particularly where ratings agencies have a conflict of interest in terms of the connection of fees to ratings outcome or product issue success,'' Ms Gibson said.

"There is a wider market issue about the extent to which investors rely on the ratings agencies for their investment decisions and whether the level of diligence and discussion undertaken by the agencies warrants this reliance.''

Most of the worst examples of optimistic assessment by ratings agencies happened in the US and Britain because they related to bond insurance.

Listed investment vehicles trading at a significant discount to their announced asset values will also attract ASIC's scrutiny, particularly those involving infrastructure.

Ms Gibson said the regulator would examine privatisation, asset sales and wind-ups of these types of vehicles.

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

Thanks Splitpin, I just quickly read through it, I guess the outcome rests with ASIC (again), I can see why it takes so long for legal action to take place in the case of corporate fraud. I will paste an interesting article concerning ASIC I read yesterday, I feel that at least the spotlight is now focused more strongly as to what has happened to the PIF and other similar investment schemes. Regards, Seamisty::::::::Watchdog bares teeth in crackdown
By Nicola Berkovic | August 08, 2008 08:40am

ASIC has listed areas it will target over the next few months
The move follows months of turbulance on financial markets
.

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Seamisty

That is the sort of good news we want to hear.

I trust WC will read it long and hard and start to feed us some real facts through the WC web site instead of the piece meal media gobblygoop we have been receiving.

I have been studing the investment allocation of the fund as set out in the WC web site and the first mortgage loan book as per the attachement to the forums questions and nothing really adds up or makes any sense or indicates what WC is up to.

I don't believe for a moment the numbers being thrown around.

I think the fund with good management may be worth more than we are lead to believe.

Part of the answer is in the first mortgage loan book of $360M, but is WC a good possession developer / manager of this.

Regards

Splitpin

Re: Octaviar MFS Premium Income Fund PIF

Morning all, hope ASIC throws them all in jail....If I ring the hotline at WC is it possible to speak to JH personally?

Re: Octaviar MFS Premium Income Fund PIF

Exactly Splitpin, in my thread 1568 on page 79 of this forum this was noted. It reads basically what OCV offered in the first place, with a few bits to dolly it up, and I guess this term sheet is, or hopefully is a first and not final draft. After reading the the March 2008 Investment Allocating on the Newpif website and having portions explained to me by an investment advisor (successful) of some 52 years, there is no way I will vote for JH, it does not mean liquidation!!

Re: Octaviar MFS Premium Income Fund PIF

If we as investors own the fund....then why can't we have access to ALL the paperwork? .......maybe then we could run it ourselves and save a fortune....is this possible?

Re: Octaviar MFS Premium Income Fund PIF

ASIC commissioner Belinda Gibson said the regulator would focus on listed investment funds and disclosures relating to complicated financial assets, particularly the ones subject to winding up actions


Seamisty

One of the fundamental issues i have repeatedly attempted to highlite on this forum is how vulnerable our position becomes when we have only one source with a vested interst for a unbiased valuation of the Funds Assets

Valueing assets is about as unpredictable as getting a diagnosis from a Psychiatrist . You will get a different interpretation every time depending on the person making the analysis .