Liquidator to quiz MFS founder Adams
KATE LAHEY
June 15, 2010
MFS founder Phil Adams will answer questions this week about his role in the Gold Coast financial group, when he returns from Dubai to face publicly creditors to the company for the first time since the multibillion-dollar empire collapsed.
Mr Adams moved to Dubai in mid-2007 to expand the investment group overseas and still lives there.
He has not spoken publicly about the MFS collapse in 2008, and has since promoted his professional record as one of solid success.
Creditors are yet to recover about $2.5 billion from MFS, which was found to have $1 billion in intercompany loans.
Liquidator Kate Barnet, of Bentleys Corporate Recovery, is due to examine Mr Adams in the New South Wales Supreme Court on Friday.
He may also face questions from liquidators at Ferrier Hodgson, on behalf of two MFS-related entities, Octaviar Investment Notes and Octaviar Investment Bonds.
Mr Adams was overseas when MFS allegedly used a $100 million loan meant for the Premium Income Fund to repay a debt to another lender.
Unlike co-founder Michael King, Mr Adams is not included in an Australian Securities and Investments Commission case against former MFS directors and executives in the Queensland Supreme Court. The case centres on these loan transfers.
The highly complex structure of MFS, its rapid growth through acquisitions and lack of consolidation have also been raised in the examinations as contributing to the way the company was operating when it went to the market in January 2008 seeking $550 million to ''reduce indebtedness''.
http://www.smh.com.au/business/liquidator-to-quiz-mfs-founder-adams-20100614-yabf.html
OCV
octaviar limited
