Octaviar, the debt-stricken property group formerly known as MFS, will soon be updating investors in its Premium Income Fund on the troubled fund's fate.
The fund announced recently that it had defaulted on a $184 million loan from the Royal Bank of Scotland, which means the debt is payable on demand.
The good news is that the "standstill agreement" - ie stay of execution on payment of the loan - has been extended. Further details are expected to be released to investors sometime over the next week.
The 11,000 investors who put $770 million into the fund still face significant losses. MFS froze redemptions in January to stem withdrawals. Earlier this month investors were informed the fund had ceased distributions.
It wasn't the only news lost amid last week's name change.
The company announced that the MFS Cash Enhanced Fund is to be wound up "due to a lack of critical mass" of funds. Investors never particularly took to the fund, which topped out at around $2 million at its peak and now has $667,670 under management.
OCV
octaviar limited
premium income fund
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