ASX Announcement
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Creditor Update
8 August 2008
To remain as a going concern Octaviar Limited (ASX code: OCV) must reach an accommodation with its large creditors so as to align the obligations to those creditors with the realisation of the group’s assets.
Offers made to Creditors
As previously announced, an offer was made to the holders of listed unsecured notes (ASX code: OCVG) on 18 July 2008. Pursuant to that offer, if the Trustee and 75% or more of Noteholders agree to change the terms of the notes, then Noteholders can chose between either a “Cash Now” offer of between 22.5 cents and 100 cents in the dollar, a secured debt position until 2011 for the full face value of the notes, or a combination of the two.
Similar offers have now been made to Bondholders and the Responsible Entity of the Premium Income Fund. An offer has also been made to the Australian Taxation Office. The Company will make a secured debt offer to OPI Pacific Finance itself and a direct cash offer to individual OPI Pacific
Finance investors as soon as OPI Pacific Finance and its Trustee confirm the offers are within the Moratorium terms already agreed.
Status and Timetable of Offers
Listed Notes
Noteholders had been asked to respond to the offer by 7pm 11 August 2008 however in response to recent requests by a number of large Noteholders, including those who have now formed a Steering Committee, the Company has agreed to delay the close of this voting process to give Noteholders more time to consider the material provided and to determine their desired course of action. The revised
closing date for the offer is now 4pm 29 August 2008.
At the time of this announcement, the Company has received 184 voting forms indicating a preference either for or against the proposed suggested amendments to the terms of the notes. The “Yes” votes are running at more than 95% by number and more than 88% by value. Whilst the responses are more than a third of the total Noteholders by number, the 20 largest holders account for more than 85% by value
and it is the majority of these large Noteholders who have asked the company to extend the timetable to allow further time for analysis and consideration of the offer.
Bondholders have sought an extension of the original 11
August 2008 deadline and the Company has agreed with them that the timetable will be consistent with that set for the holders of the listed notes.
Premium Income Fund
The Responsible Entity has advised that the cash offer is likely to be accepted, subject to the acceptance by other creditors of offers put to them.
Australian Taxation Office
The Company has sought a meeting next week with Officers of the ATO to fully explain the offer
being made.
Other Creditor matters
With the successful recapitalisation of the Living and Leisure Australia Group (ASX code: LLA) in
recent days the advance by NAB to LLA guaranteed by the Company has been repaid in full. As a
consequence the NAB no longer has a claim against the Company.
David Anderson
Company Secretary
OCV
octaviar limited
