This article is from the Australian Property Journal archive
OCTAVIAR Limited's large creditors have asked for more time to review the company's ultimatum.
Last month, Octaviar made an offer to holders of listed unsecured notes to cash in their investment for between 22.5 cents and 100 cents in a dollar, back the company until 2011 or force the directors to wind up the company.
Company secretary David Anderson said so far 75% or more of Noteholders have agree to change the terms of the notes.
And similar offers have now been made to bondholders and the Responsible Entity of the Premium Income Fund as well 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.
Andersons said 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 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,” he added.
Anderson said 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.
Bondholders have sought an extension of the original August 11 deadline and the company has agreed with them.
Meanwhile, the Responsible Entity of Premium Income Fund has advised that the cash offer is likely to be accepted, subject to the acceptance by other creditors of offers put to them.
And the ATO will meet with the company next week to fully explain the offer being made.
Finally following the successful recapitalisation of the Living and Leisure Australia Group last week the National Australia no longer has a claim against Octaviar.
Australian Property Journal
