Octaviar continues struggle
Troubled Queensland-based financial group Octaviar has issued an announcement to the Australian Securities Exchange today revealing that it is still struggling on a number of fronts including a demand for $40 million from the National Australia Bank and fighting a legal action with Challenger Managed Investments.
The ASX announcement, issued this morning, also revealed that the company (formerly known as MFS Limited) continued to have a significant exposure to a New Zealand association, OPE Pacific Finance Limited, but that a moratorium was being proposed to allow OPI Pacific Company to work out of its loan book.
With respect to the National Australia Bank, the company said that it had provided a guarantee to the extent of $40 million to the bank in support of a facility being extended to the Living and Leisure Group and that NAB had requested payment under that guarantee.
It said that, subsequently, NAB had formalised its request with the service of a Creditor’s Statutory Demand for the $40 million and that Living and Leisure had announced a recapitalisation that included refinancing or repaying the NAB facility.
The announcement said that the Challenger legal action involved bonds issued by a subsidiary with a face value of $100 million to funds managed by Challenger and due to mature in November 2011. It said Challenger had asserted that a trigger had occurred, which, if correct, would make the bonds due and payable.
It said discussions were continuing with Challenger with no resolution having yet been reached.
AUTHOR
Mike Taylor
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