NEWS UPDATE: QLD Public Trustee seeks Octaviar windup
The Public Trustee of Queensland (PTQ) has filed applications in the Supreme Court of Queensland seeking wind up orders for the various Octaviar Limited companies.
According to Octaviar, the PTQ has filed separate applications in relation to Octaviar Limited, Octaviar Financial Services, Octaviar Investment Notes and Octaviar Investment Bonds.
“We are currently considering the applications filed yesterday and hope to discuss the applications with the PTQ prior to any court hearing,” Octaviar company secretary David Anderson said.
The PTQ is the trustee of investors holding listed notes in Octaviar Investment Notes Limited (OIN). Last week, the PTQ asserted that OIN had defaulted on its obligations and as a result required payment of $351 million today, June 5, 2008.
OIN has denied that the notice is valid, and said that attempts to arrange discussions with PTQ regarding its notice have not been successful.
Octaviar said it is still in discussions with Challenger Managed Investments regarding bonds with a face value of $100 million. Challenger asserts the bonds are now due and payable as a result of a trigger occurring, while Octaviar maintains the bonds are due to mature in November 2011. A resolution is yet to be reached.
Octaviar has also failed to satisfy the National Australia Bank’s (NAB’s) demand on $40 million in a facility extended to the Living and Leisure Group under an Octaviar guarantee.
The Living and Leisure Group announced on Monday that it had delivered NAB a conditional term sheet for new senior financing facilities from another bank. It also announced that it had advanced matters necessary for a capital restructuring to allow the repayment of the NAB facility.
“There continues to be uncertainty as to whether an accommodation can be achieved with the major creditors,” Anderson said.
Meanwhile, the embattled group has entered into a moratorium with investors in OPI Pacific Finance in New Zealand, with the first distribution made to investors last week.
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