OPI Pacific Finance to oppose liquidation of Octaviar Wed, 23 Jul 2008 8:41a.m.
The directors of OPI New Zealand are heading to the Supreme Court in Brisbane tomorrow to try to stop Queensland's Public Trustee from liquidating 38.8 percent stakeholder Octaviar.
Queensland-based property and finance company Octaviar owes millions to OPI New Zealand's subsidiary OPI Pacific Finance.
The Public Trustee is taking legal action on behalf of Octaviar's listed noteholders who have $A348 million ($NZ451 million) tied up in the troubled company.
If liquidation proceeds, OPI Pacific Finance investors could get back as little as 12.4c in the dollar, The New Zealand Herald reported today.
The case was to be held in September but the Public Trustee applied to have it brought forward after Octaviar announced a creditors' proposal.
A spokesman for OPI New Zealand said the directors did not support the liquidation proceedings.
"The directors have not yet had sufficient time to consider the offer that Octaviar is making to its creditors.
"OPI Pacific has advised the Public Trustee that it intends to appear at the proceedings and oppose the making of any winding-up orders."
OPI Pacific Finance was forced to default on repayments in late January when Octaviar declined to provide further support, because of its own difficult financial position.
NZPA
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