Octaviar Limited ABN 90 107 863 436 For further information please contact Investor Relations: 131 637 E-mail: [email protected] Website: www.octaviar.com.au Telephone: 1300 787 650 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street Sydney NSW 2000 ASX Announcement _______________________ Creditor Update 24 June 2008
As previously announced the Octaviar Group needs to reach an accommodation with its large creditors so as to align the obligations to those creditors with the realisation of the Group’s assets. We continue in discussions with the large creditors regarding such an accommodation. Developments regarding these large creditors since the announcement of 5 June 2008 are set out below. Listed Notes As previously announced, the Public Trustee of Queensland (PTQ) is seeking winding up orders against Octaviar Limited and three subsidiaries in relation to unsecured notes and interest totalling approximately $351 million. The Octaviar companies deny that the monies are currently due and are opposing the winding up applications. At an initial court hearing on 20 June 2008 the applications were transferred to the Commercial Causes List of the Supreme Court of Queensland and have been set down for hearing on 9 and 10 September 2008.
Australian Taxation Office (ATO) Octaviar Limited recognised a liability of $52.5 million in its financial accounts at 31 December 2007 regarding income tax for the year ended 30 June 2007. No assessment has been received from the ATO.
On 19 June 2008 the Company received a statutory demand from the ATO for approximately $56 million, being the deemed unpaid income tax due and approximately $4 million in general interest charges. Premium Income Fund (PIF) In addition to the $50 million claimed under the Support Mechanism previously announced, the Responsible Entity for PIF has now claimed damages against Octaviar Limited and an Octaviar subsidiary for $147.5 million in relation to investments made by PIF. A claim of this nature was noted as a possibility in the notes to the financial statements at 31 December 2007. Octaviar Limited ABN 90 107 863 436 For further information please contact Investor Relations: 131 637 E-mail: [email protected] Website: www.octaviar.com.au Telephone: 1300 787 650 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street Sydney NSW 2000 OPI Pacific Finance Limited As previously announced, provision was made in the financial statements of the Octaviar Group at 31 December 2007 for an obligation of $246 million to OPI Pacific Finance Limited under a Put Option. An initial amount of $20 million was paid by Octaviar Limited in March 2008. On 19 June 2008 OPI Pacific Finance Limited advised of a damages claim for approximately $270 million against both Octaviar Limited and an Octaviar subsidiary which provides management and other services. Unlisted Bonds As previously announced, an Octaviar subsidiary issued $100 million in unlisted bonds originally due to mature in 2011 and the Bondholders have commenced legal action in relation to these unlisted bonds. The hearing date was set for 21 July 2008. The winding up applications subsequently brought by the PTQ have triggered an event of default in relation to the unlisted bonds and we have agreed with the Bondholders that the Bondholders now have the ability to make the bonds due and payable. The litigation regarding additional guarantees that the Bondholders assert they are entitled to receive continues. The hearing date of 21 July 2008 remains relevant for these remaining matters. National Australia Bank Limited (NAB) The NAB demand for $40 million from Octaviar Limited pursuant to a guarantee regarding the NAB advance to the Living and Leisure Australia Group (ASX code: LLA) remains unsatisfied. LLA have recently announced further developments in the Arctic Capital proposal to recapitalise LLA and refinance its NAB debt. We have reached an in principle agreement with Arctic Capital regarding the sale to Arctic Capital of the Octaviar subsidiary which is the responsibly entity of the LLA Trust. That agreement is conditional on the release of the Octaviar Limited guarantee to NAB. David Anderson Company Secretary
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