This article is from the Australian Property Journal archive
THE future of Octaviar Limited, formerly known as MFS Limited, is in doubt after creditors filed court documents to wind up the company and three other entities.
The Public Trustees of Queensland is the trustee for those investors who hold the listed notes in Octaviar.
Late Wednesday, PTQ filed orders in the Queensland Supreme Court to wind up Octaviar, Octaviar Investment Notes, Octaviar Investment Bonds and Octaviar Financial Services.
PTQ claims Octaviar Investment Notes has defaulted on $351 million in bonds and interest.
Yesterday Octaviar said the notice is invalid.
Company secretary David Anderson said attempts to arrange discussions with the PTQ regarding their notice have not yet been successful.
“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,” he added.
But Anderson said there continues to be uncertainty as to whether an accommodation can be achieved with the major creditors.
James Packer’s Challenger Managed Investments Limited has also launched legal action against the company and no resolution had yet been reached.
In addition, the National Australia Bank demand on Octaviar Limited under the guarantee currently remains unsatisfied.
Anderson said the Living and Leisure Group, which is the borrower under the NAB facility is advanced its Rights Offer documentation allowing it to repay the NAB facility, which would end Octaviar’s obligations to NAB under the guarantee.
But LLA’s deal is teetering.
Earlier this week, LLA’s warned investors that its restructuring deal with James Packer’s private equity arm Artic Capital Limited could fall over if Octaviar is forced into administration.
Australian Property Journal contacted the PTQ but it was unable to comment on the matter.
Australian Property Journal
