Octaviar Debtors Opt for Administration, Financial Review Says...

Octaviar Debtors Opt for Administration, Financial Review Says

By Gemma Daley

Sept. 10 (Bloomberg) -- Creditors of Octaviar Ltd., owed A$1 billion ($802 million), agreed last night to appoint a voluntary administrator for the financial services company, the Australian Financial Review reported.

Creditors, including the Premium Income Fund, OPI Pacific Finance and Challenger Financial Services Group Ltd., had little choice given a group of noteholders owed A$348 million by 2011 argued in Queensland Supreme Court that the company needed to be wound up, the newspaper reported.

Under a winding-up, Octaviar's assets would be sold off piecemeal, the newspaper said. Under voluntary administration, directors can remain in their jobs and assets can be sold off more gradually, the Review said.

The court put in place a restraining order at the request of the Public Trustee of Queensland, acting on behalf of noteholders, barring the Octaviar directors from appointing an administrator until 5 p.m. today, the newspaper said. Octaviar was formerly called MFS Ltd