peacock breaks silence

Don't know if this has been posted yet... but it seems like they're trying hard to fix everything bad that's happened to the SP and they also sound like they're genuinely concerned about the shareholders of the company which is much better than if they didn't give two hoots. I'm sure they'll be working their butts off to save and salvage what they can and I sure hope they succeed.

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Peacock breaks silence on stricken MFSBy Anthony Klan and Richard Gluyas

February 01

MFS chairman and former federal Liberal leader Andrew Peacock yesterday broke his two-week silence over the embattled company, saying he wanted to do the right thing by shareholders.

Mr Peacock said his role as chairman had absorbed "just as many hours" during the fortnight as had his job as Opposition leader at the height of his political career in the 1980s.

"We're managing through a difficult situation ... it takes time," Mr Peacock said.

He would not disclose the circumstances surrounding his appointment as chairman of MFS last March, but said he was surprised at the group's share price collapse two weeks ago, when more than $1.5 billion was wiped from the value of the company.

"I was surprised by the meltdown in the share price on the day," Mr Peacock said.

"The then chief executive (Michael King) made the announcement he did and I didn't expect the share price or the market to react in the manner it did."

MFS shares were suspended from trading after shares in the company - which had been trading at about $5 in December - slumped to 99c following an announcement by MFS that it was attempting to source $220 million of previously undisclosed debt.

Yesterday, the MFS pain spread across the Tasman, with MFS New Zealand, which holds about $300 million of investor funds, also entering a trading halt, citing "uncertainty" facing its Australian parent.

That move follows an announcement on Tuesday that MFS subsidiary MFS Premium Income Fund had frozen the investments of more than 10,000 people - totalling $770 million - for up to six months.

Mr Peacock divides his time between Washington and Sydney and was forced to return to Australia after MFS entered its trading halt. The MFS meltdown meant it would be "some months" before he returned to the US, Mr Peacock said.

The former Liberal leader would not discuss how much he was paid to chair MFS, but a spokeswoman had previously said he was paid $250,000 a year.

Mr Peacock said it was "taking a while to work into" MFS's detailed finances, but he had "huge regard" for new MFS chief executive Craig White.

But when asked about his feelings for MFS founder Mr King, who resigned as chief executive last week after the share price slump, Mr Peacock was less enthusiastic. "I'd prefer not to go there," he said.

A Melbourne business figure said Mr Peacock was "highly embarrassed" by his association with MFS, with the tenure likely to damage his reputation among contacts in Canberra.

The source said Mr Peacock had been advised against joining MFS by his son-in-law, former Victorian Liberal president Michael Kroger.

Mr Peacock initially refused to comment on the claim, saying "I don't comment on family matters". He later said no one had advised him against MFS.

Mr Peacock would not comment on whether he believed the company, which has been heavily criticised for its poor transparency, could have done a better job of disclosing its debt position before its share collapse.

"We are working our way through (the meltdown) and managing well to date," he said.

"I'm always concerned and wanting to do the right thing by shareholders