The administrators of Octaviar Limited (Octaviar) are yet to decide whether they will restructure or wind up the financial services firm.
Deloitte Corporate Reorganisation Group partners John Greig and Nicholas Harwood were appointed voluntary administrators of Octaviar yesterday.
The administrators were also appointed to a number of the firm's subsidiaries: Octaviar Financial Services Limited (formerly MFS Group Limited), Octaviar Investment Notes Limited (formerly MFS Investment Notes Limited) and Octaviar Investment Bonds Limited (formerly MFS Investment Bonds Limited).
The appointment was made by Octaviar directors following hearings brought before Justice McMurdo in the Supreme Court of Queensland, by the Public Trustee of Queensland - to wind up the companies.
A further hearing in the same Supreme Court is expected to confirm the date of the next hearing, which will decide whether to wind up the group of Octaviar companies. At this stage the date looks to be October 24.
"After conducting a thorough investigation into the affairs of Octaviar, the voluntary administrators will be reporting to creditors as to whether it is in their interests for Octaviar to enter into a Deed of Company Arrangement to restructure its business, or... whether creditors would be better off for the companies to be wound up," Greig said.
"We envisage this investigation and the compilation of our report will take several months, given the size and complexity of the group."
Creditors' claims are likely to be in excess of $1 billion, the largest of these includes approximately 550 noteholders, OPI Investments, Premium Income Fund, Bond holders and the Australian Taxation Office, the administrators said.
Octaviar changed its name from MFS Limited in March 2008.
