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DJ MFS Director Warns Of Billion Dollar Writedowns - Report16/04/2008 08:06AM AEST
MELBOURNE (Dow Jones)--It could be up to three months before shareholders in embattled tourism and leisure group Octaviar Ltd. (OCV.AU), formerly MFS, know whether the group will survive, The Australian Financial Review reported Wednesday.

Director and major shareholder Chris Scott told the newspaper it would be July before advisory practice 333 Capital could determine whether the company had the capacity to pay the hundreds of millions of dollars still owed to its biggest creditors, and which parts of the Gold Coast-based business were salvageable.

"By the end of July it's either liquidation and the basket of history, or we have a future," Scott told the newspaper.

Shares in the company are in an indefinite trading halt as it conducts a review of its financing and operating structures after its market capitalization more than halved in January amid worries about its financial position.