I will repost for the benefit of those that are unaware that Wellington Capital Limited
has lodged a Proof of Debt totalling $211 million on behalf of the Premium Income Fund with the Liquidators of
Octaviar Limited and Octaviar Administration Pty Ltd which is Bentleys and felt in necessary to have my previous post removed. http://www.nsxa.com.au/ftp/news/021723840.PDF
SUPREME AND DISTRICT COURTS BRISBANE
LAW LIST
Wednesday 21 January 2015
Column 1
Column 2
Column 3
Column 4
1
FLETCHER & another -V- FORTRESS CREDIT CORPORATION (AUSTRALIA) II PTY LTD & others
This thread has been removed from public view on 23/01/15 10:25 because of (Off-topic)
Comments:What has this specifically to do with OCV? If it IS relevant to this company's business dealings & you can substantiate same, then you can repost it - however it's been reported as having nothing to do with OCV the company
by: Leo Shanahan
From:The Australian
June 04, 2012 12.00AM
LIQUIDATORS for the failed financial group MFS have made a bold bid to recover more than $200 million in repayments made to the company's former financier, Fortress Investment Group.
In a claim lodged in the Queensland Supreme court, liquidators for MFS -- now called Octaviar -- have demanded at least $210m from the local arm of New York-based Fortress.
They allege Fortress breached the Corporations Act in accepting a payment of $189.89m from the former directors of MFS when they knew, or should have known, the Gold Coast-based company was insolvent at the time the payment was made in February 2008.
Liquidators William Fletcher and Katherine Barnet of Bentleys Corporate Recovery are also aiming to recover another $19.7m payment made in December 2008 from Octaviar to Fortress, two months after the company was placed in voluntary administration in September 2008.
Interest on the repayments is also being claimed by the liquidators, meaning, if successful, the final return could be more than $210m.
Ten thousand investors, mostly elderly, lost about $700m when the MFS-founded Premium Income Fund collapsed in the global financial crisis, with the company now owing a total of $2.4 billion to creditors.
The repayments made by MFS to Fortress between February and December 2008 were funded through the sale of its hospitality arm, Stella, to the CVC Group the same year.
The liquidators allege that Fortress "conspired" with former Octaviar directors David Anderson and Craig White -- who are also listed as defendants in the case -- to receive the repayments despite the company being in financial dire straits.
"Between around January and February 2008, Fortress received a large amount of information about the cash position and solvency of OA (Octaviar Administration) and OL (Octaviar Ltd), the financial position of the Stella Group (including, but not limited to, inter-company loans), and the CVC proposal and the Stella share sale agreement," they claim.
"The plaintiffs contend that Fortress aided, abetted, counselled or procured the contraventions within the means of section 79(a) (of the Corporations Act), has been knowingly concerned in, or party to, the contraventions . . . and, or alternatively, has conspired with Mr Anderson and Mr White to effect the contraventions."
Contents of a series of emails dating from January to March 2008 between MFS director David Anderson, Fortress director David Kelleher and Fortress agent Mark Kwei discussing the loan repayments will be used in evidence.
Fortress is contesting the claim and has lodged defences and affidavits in the court which aim to establish the propriety of the loan and repayments.
Fortress did not respond to a request by The Australian for comment yesterday.
The claim is the latest twist in an ongoing battle between Octaviar liquidators and Fortress Investment Group, since the Gold Coast-based group went under.
The liquidators had previously had $40m in Fortress assets frozen under a court order, including $20m from the escrow account into which the payments were allegedly made.
Fortress, meanwhile, claims it is owed $71m more by Octaviar as a secured creditor for two loans made in 2007.
Last week, Fortress Investment Group director Mark Kwei was quizzed by the liquidators in the Federal Court in Sydney during an examination into the Octaviar collapse. Mr Kwei was asked about the whereabouts of hundreds of millions of dollars paid from Octaviar to a Fortress subsidiary, Fortress Credit Corporation (Australia) II, which is now also the subject of a freezing order.
The liquidator is trying to establish when Octaviar became insolvent and is examining a number of transactions at the group, including $1 billion of intercompany loans, the sale of Stella and other assets and the granting of securities.
The Australian Securities & Investments Commission has launched civil proceedings against five MFS executives, including former chief executive Michael King, and three MFS subsidiaries.
OCV Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
