octaviar deal in spotlight

http://www.news.com.au/couriermail/wireless/story/0,22282,3122-25457668,00.html Octaviar deal in spotlight by Anthony Marx | May 11, 2009 THE Brisbane merchant bank run by lawyer Jenny Hutson faces allegations it snared the valuable management rights to a $755 million fund for nothing. The claim about Ms Hutson's firm Wellington Capital is included in Brisbane Supreme Court documents filed by the Public Trustee of Queensland, which is seeking the wind-up of two remaining entities in the failed Octaviar finance and tourism group. The Public Trustee claims only a liquidator can properly "investigate the disposal of the responsible entity for the (Octaviar) Premium Income Fund to Wellington Capital for no real consideration". The document alleges Ms Hutson's close professional ties to former Octaviar executive director Chris Scott allowed them to work out a complicated payment scheme that effectively transferred ownership of PIF's oversight company to Wellington for free in June. The document notes Wellington became the responsible entity for PIF two months ago. Ms Hutson rejected the allegations, criticising them last week as "inaccurate and incomplete". "I take great offence at what the Public Trustee is doing," she said. Ms Hutson stressed Octaviar's administrators at accounting firm Deloitte had examined the sale of Octaviar Investment Management to Wellington and had concluded that the transaction was completed on "commercial terms". Mr Scott lashed out at the Public Trustee, saying that Wellington's intervention had saved the fund from the appointment of bank receivers. Ms Hutson has blamed the economic downturn for the scrapping of a 3¢ dividend promised late last year to the 10,387 investors in PIF, which trades on the National Stock Exchange. She said $120 million worth of assets had already been sold and the upcoming auction of 10 properties could net $150 million, allowing her to start making distribution payments. Ms Hutson said $100 million debt had already been paid off and efforts were under way in court to recover another $203 million from Octaviar entities.