DISGRUNTLED shareholders in Octaviar Limited, formerly known as MFS Limited, have launched an $80 million class action against the company.
The company said it has received correspondence from Maurice Blackburn Lawyers stating that they have been retained them in relation to possible class proceedings.
The claims is said to total $80 million and it is said that this amount may increase if more shareholders seek to participate in any claim.
Octaviar which just recently survived a challenge from the Public Trustees of Queensland to put it into administration said so far noteholders who have replied to the company’s you are either with us or not proposal show a 90% support.
But the larger Noteholders are yet to reply and for the vote to be successful the amendments must be supported by the holders of at least 75% of the total notes on issue.
Meanwhile, the company’s meeting with Noteholders called by the PTQ held on August 19 was adjourned at the request of a group of large Noteholders to allow them further time to consider the company’s proposal.
The PTQ meeting will recommence immediately on September 03.
Octaviar said the OPI Pacific Finance investors have called a further meeting of its investors for September 08 to consider the secured debt offer now made by Octaviar.
Octaviar has made a cash offer directly to the OPI investors. That cash offer also closes on September 08 and is conditional on the OPI investors agreeing at the meeting to OPI Pacific Finance entering into the secured debt arrangement with Octaviar.
The OPI Pacific Finance investors have made $417.5 million claims against the company.
Finally, the company is also negotiating with the Australian Taxation Office and bondholders of the unlisted bonds.
The ATO has slapped the company with a $56 million tax bill.
James Packer’s Challenger Managed Investments Limited has also launched legal action against the company and no resolution had yet been reached.
Last week, the company put its Christopher Skase developed Sheraton Mirage Resort Port Douglas on the market.
Australian Property Journal
