OPI's receivers struggling to collect on parent's guarantee
OPI Pacific Finance's receivers aren't having much luck in collecting on supposed guarantees provided by its Australian parent.
Tuesday, May 15th 2012, 1:28PM
by Jenny Ruth
In their latest statutory report, Colin McCloy and Maurice Noone of PricewaterhouseCoopers say they have claimed A$418 million (NZ$536.2 million) from Octaviar, OPI's Australian parent company, and an Octavier subsidiary, both of which are in liquidation themselves.
The subsidiary had been responsible for managing the loans of OPI and sister company OPI Pacific Investment to which OPI had lent $20.9 million.
Octaviar had agreed to cover OPI's bad loans by granting it a "put option" in July 2006.
The receivers say the Octaviar subsidiary's liquidators announced an interim dividend for creditors in late 2011.
"Unfortunately, the liquidators have not finished adjudicating (OPI's) claim and accordingly have not made any payment to (OPI)," they say.
"We have been discussing (OPI's) claim with the liquidators and have provided further information to support (OPI's) claim. We are waiting for a response from the liquidators."
The receivers say Octaviar has no funds to make distributions at present and it and the subsidiary's assets "appear to be insufficient to meet all liabilities in full at this stage."
OPI, previously called MFS Pacific Finance, went into receivership in September 2009 owing 9,875 debenture holders $198.4 million. The only return the debenture holders have received since the receivership began was 1.67 cents in the dollar in late 2010.
A further 994 holders of unsecured notes are owed $57.5 million.
The receivers say they are continuing to pursue legal and insurance claims but it is "extremely difficult" to estimate how much the debenture holders will recover.
The receivers collected just $164,366 in the six months ended March 14, down from the $1.3 million they collected in the previous six months, and had $947,334 in cash at that date.
The receivers have previously reported they expect no return from its loan book which was secured by second and third mortgages because the first mortgagees are out of pocket.
Also as previously reported, the receivers notified the Financial Markets Authority, the Serious Fraud Office and the Ministry of Economic Development of their findings but say they can't provide further details for fear of prejudicing any legal procedings they or the authorities may take.
| « Rates round-up: May 14 | Rates round-up: May 21 » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
