Octaviar enters voluntary administration
Despite months of trying to fight off winding up orders and demands from creditors, the directors of Octaviar have appointed Deloitte as a voluntary administrator.
Octaviar’s three subsidiaries, Octaviar Financial Services, Octaviar Investment Notes and Octaviar Investment Bonds, have also entered voluntary administration.
As previously reported on www.moneymanagement.com.au, the Queensland-based financial services group, which was formerly known as MFS, has been struggling to stay afloat for months, faced with demands for $40 million from the National Australia Bank and legal action from Challenger Managed Investments.
The final blow was dealt late last month when a number of former and current shareholders announced they would also be seeking legal action.
Prior to appointing a voluntary administrator, Octaviar had attempted to reach an accommodation with its large unsecured creditors, however, some of the proposals were rejected.
In a statement to the Australian Securities Exchange, the company announced it “looked forward to working with the voluntary administrators to achieve an accommodation with all creditors to produce a better outcome for stakeholders than liquidation”.
Stephen Parbery and Anthony Sims of PPB have been appointed as receivers and managers of Octaviar and will consider the various restructure proposals available in light of the appointment of administrators.
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