Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations: 131 637
E-mail: [email protected]
Website: www.octaviar.com.au
Telephone: 1300 787 650
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
ASX Announcement
_______________________
Creditor Update
24 June 2008
As previously announced the Octaviar Group needs to reach an accommodation with its large creditors
so as to align the obligations to those creditors with the realisation of the Group’s assets.
We continue in discussions with the large creditors regarding such an accommodation.
Developments regarding these large creditors since the announcement of 5 June 2008 are set out below.
Listed Notes
As previously announced, the Public Trustee of Queensland (PTQ) is seeking winding up orders
against Octaviar Limited and three subsidiaries in relation to unsecured notes and interest totalling
approximately $351 million.
The Octaviar companies deny that the monies are currently due and are opposing the winding up
applications. At an initial court hearing on 20 June 2008 the applications were transferred to the
Commercial Causes List of the Supreme Court of Queensland and have been set down for hearing on
9 and 10 September 2008.
Australian Taxation Office (ATO)
Octaviar Limited recognised a liability of $52.5 million in its financial accounts at 31 December 2007
regarding income tax for the year ended 30 June 2007. No assessment has been received from the
ATO.
On 19 June 2008 the Company received a statutory demand from the ATO for approximately $56
million, being the deemed unpaid income tax due and approximately $4 million in general interest
charges.
Premium Income Fund (PIF)
In addition to the $50 million claimed under the Support Mechanism previously announced, the
Responsible Entity for PIF has now claimed damages against Octaviar Limited and an Octaviar
subsidiary for $147.5 million in relation to investments made by PIF. A claim of this nature was noted
as a possibility in the notes to the financial statements at 31 December 2007.
Octaviar Limited
ABN 90 107 863 436
For further information please contact
Investor Relations: 131 637
E-mail: [email protected]
Website: www.octaviar.com.au
Telephone: 1300 787 650
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
OPI Pacific Finance Limited
As previously announced, provision was made in the financial statements of the Octaviar Group at
31 December 2007 for an obligation of $246 million to OPI Pacific Finance Limited under a Put
Option. An initial amount of $20 million was paid by Octaviar Limited in March 2008.
On 19 June 2008 OPI Pacific Finance Limited advised of a damages claim for approximately $270
million against both Octaviar Limited and an Octaviar subsidiary which provides management and
other services.
Unlisted Bonds
As previously announced, an Octaviar subsidiary issued $100 million in unlisted bonds originally due
to mature in 2011 and the Bondholders have commenced legal action in relation to these unlisted
bonds. The hearing date was set for 21 July 2008.
The winding up applications subsequently brought by the PTQ have triggered an event of default in
relation to the unlisted bonds and we have agreed with the Bondholders that the Bondholders now have
the ability to make the bonds due and payable. The litigation regarding additional guarantees that the
Bondholders assert they are entitled to receive continues. The hearing date of 21 July 2008 remains
relevant for these remaining matters.
National Australia Bank Limited (NAB)
The NAB demand for $40 million from Octaviar Limited pursuant to a guarantee regarding the NAB
advance to the Living and Leisure Australia Group (ASX code: LLA) remains unsatisfied.
LLA have recently announced further developments in the Arctic Capital proposal to recapitalise LLA
and refinance its NAB debt. We have reached an in principle agreement with Arctic Capital regarding
the sale to Arctic Capital of the Octaviar subsidiary which is the responsibly entity of the LLA Trust.
That agreement is conditional on the release of the Octaviar Limited guarantee to NAB.
David Anderson
Company Secretary
OCV
octaviar limited
