Octaviar under pressure to repay debts14:54 AEST Tue May 27 200812 minutes ago[x] Sorry, your configuration doesn't support this feature. The minimum requirements are MSN Messenger 6.0 or higher and Internet Explorer 5.5 or higher. Download Windows Live Messenger now.
VIEWS: 0| FLOCKS: 0| 0 comments so farOctaviar Ltd, the fund manager formerly known as MFS, is in talks with parties that include National Australia Bank Ltd and Challenger Financial Services Group Ltd about repayments demanded from the company.
Octaviar subsidiary Living and Leisure Australia Group has proposed a recapitalisation that would include refinancing or repaying a $40 million loan from NAB, which formally requested repayment through a creditor's statutory demand on May 7.
Octaviar, whose shares won't trade on the Australian Securities Exchange until there is more certainty about its financial condition, said in a statement that it had provided NAB with a guarantee for the money.
Separately, Octaviar has been served with a notice by the Public Trustee of Queensland (PTQ), representing investors in listed notes of the company, saying a default had occurred and was demanding repayment of $351.5 million, including interest, by June 5.
The company said it was considering the PTQ notice and was expecting to enter into discussions soon about the notes that mature in December 2011.
Challenger Managed Investments Ltd, which is managing bonds issued by Octaviar with a face value of $100 million, commenced legal action against the Gold Coast-headquartered Octaviar, asserting that the occurrence of a trigger event made the notes payable.
Octaviar says it is continuing discussions with Challenger. The bonds are due in November 2011 and Octaviar paid the interest outstanding due on May 23.
The company said holders of debentures and unsecured notes of Octaviar's New Zealand associate, OPI Pacific Finance Ltd, had voted in favour of a moratorium on debt repayments so as to work out how to reschedule the debt over the next three years.
Octaviar will enter into similar arrangements with other large unsecured creditors if they agree.
OCV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
