This article is from the Australian Property Journal archive
EMBATTLED Octaviar Limited might have won a second chance to stay afloat thanks to a technicality which saw it remove creditor the Public Trustee of Queensland.
The PTQ last month filed in the Queensland Supreme Court to wind up Octaviar, Octaviar Investment Notes, Octaviar Investment Bonds and Octaviar Financial Services.
The PTQ was acting on behalf of 500 noteholders and claims Octaviar Investment Notes has defaulted on $351 million in bonds and interest.
However, yesterday Octaviar Investment Notes removed the PTQ and replaced it with an unnamed new trustee.
In Court, Octaviar relied upon a letter of resignation tendered by the PTQ to the Company over one year ago.
The move by Octaviar will provide much relief as the PTQ has been firmed about putting Octaviar into administration.
The PTQ told Australian Property Journal that the appointment of a new trustee by Octaviar Investment Notes is a matter beyond its control.
“That letter remained in abeyance because the company was unable to find a replacement Trustee until very recently.
“The proposed new trustee is a qualified Trustee Company and the Public Trustee of Queensland has no reason to think that the proposed new trustee is not a fit and proper person to act as Trustee of the Deed in the interests of the Noteholders, whose opinion the new Trustee intends to seek immediately,” the PTQ added.
As a result of the move by Octaviar, the PTQ has no power to participate in the decision-making process.
It is now up to the new trustee to negotiate with Octaviar. The hearing to wind up Octaviar is scheduled for September 15.
Early this week, Octaviar gave its creditors an ultimatum – either back the company or cash out.
Octaviar said noteholders will need to chose between accepting an immediate cash payment in exchange for their notes or remain a Noteholder until June 2011 or a combination of the two.
The company is also making a similar offer to the Australian Taxation Office and the Premium Income Fund.
The ATO has slapped the company with a $56 million tax bill and the Premium Income Fund and OPI Pacific Finance Limited have made $417.5 million claims against the company.
Australian Property Journal
