Octaviar handed a lifelineDOWNLOAD
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BRISBANE – Deloitte Corporate Reorganisation Group partners, John Greig and Nicholas Harwood, have been appointed Voluntary Administrators of Gold Coast based Octaviar Limited, Octaviar Financial Services Limited, Octaviar Investment Notes Limited and Octaviar Investment Bonds Limited by their Directors.
The appointment was made by the Directors this afternoon following hearings brought by the Public Trustee of Queensland before Justice McMurdo in the Supreme Court of Queensland to wind up the companies.
“The aim of the Voluntary Administrators will be to maximise the chances of Octaviar continuing and ultimately to provide a better return for all creditors compared to the return that may result from an immediate wind up,” said Mr Greig.
A further hearing in the Supreme Court of Queensland on Monday is expected to confirm the date of the next hearing to decide whether to wind up the group of Octaviar companies. At this stage the date is slated for 24 October.
“We understand creditors’ claims are likely to be in excess of $1 billion. The largest of these include approximately 550 noteholders, OPI Investments, Premium Income Fund, Bond holders and the Australian Taxation Office. Over 90% of the notes are held by institutional investors. We also understand there may be significant contingent claims from various sources,” said Mr Greig.
“The major assets of the companies include cash of approximately $150 million and intercompany investments and receivables, including 35% interest in the Stella Group,” said Mr Greig. “The realisable value of this Stella Group interest is not yet able to be estimated.”
“After conducting a thorough investigation into the affairs of Octaviar, the Voluntary Administrators will be reporting to creditors as to whether it is in their interests for Octaviar to enter into a Deed of Company Arrangement to restructure its business, or alternatively whether creditors would be better off for the companies to be wound up,” he said.
“We envisage this investigation and the compilation of our report will take several months given the size and complexity of the group.”
For further general information on the voluntary administration process, please refer to: www.asic.gov.au/insolvencyinfosheets
For further information for clients and creditors:
Administrator of Octaviar Limited
Tel: +61 (0) 7 3308 7000 (office hours only)