Time runs out for Octaviar

Ian Rogers
The Public Trustee of Queensland served notice on Friday on property financier Octaviar (formerly MFS) demanding immediate repayment of $351 million loans , the Courier Mail reported.

The Sydney Morning Herald reported that Challenger Managed Investments also served notice for immediate repayment of $100 million.

Octaviar is also fending off demands from National Australia Bank over a $40 million guarantee the bank wants repaid, the Courier Mail reported.
The Herald Sun reported that National Australia Bank may appoint receivers to Octaviar as soon as today over that debt.

The Courier Mail reported Octaviar company secretary David Anderson as saying the company was in talks with the Public Trustee and did not believe it was in default, as interest due on April 30 had been paid and the next payment deadline came in October. The notes mature in December 2011.

The firm earlier this year froze redemptions on about $750 million in assets held through its Premium Income Fund.