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Sharks circle Octaviar
Over 300 clients in class action

By Kate Kachor
Fri 26 Sep 2008
Octaviar Limited will be confronted by more than 300 clients, as a class action mounts against the property group. More than 300 clients of Octaviar Limited (formerly MFS Limited) will mount a class action case against the embattled property group, to recover lost money.

The clients, said to be a combination of institutions and individuals, are seeking losses estimated at $80 million.

"It looks like it [Octaviar] is not an ongoing viable entity, in which case the rights of our clients are clearly affected," Maurice Blackburn class actions and major projects principal Ben Slade said.

"Whether there is any source of funds for them, to be properly compensated for the wrong that was done to them, we for the moment do not know.

"It might be that they need to line up with creditors in the final liquidation of the entity or entities... but essentially it is Octaviar Limited that we are looking at.

"We are doing it [the class action] through litigation firm IMF. One thing we are not doing is [representing] the poor investors in MFS Premium Income Fund." Slade said.

Commenting on a possible outcome for his clients, Slade said he was not overly confident.

"There is going to be a payout of some sort, but whether that will be a satisfactory resolution or not remains to be seen."

Administrators were appointed to Octaviar on September 15.

Octaviar changed its name from MFS in March this year.