Octaviar Liquidators Update
Sydney, June 23, 2020 AEST (ABN Newswire) - Asset Resolution Limited (
NSX:ASS) (ARL) is pleased to announce that there has been significant progress made on the liquidation of Octaviar Limited (formerly MFS Limited) (OL) and of Octaviar Administration Pty Ltd (formerly MFS Administration Pty Ltd) (OA).
ARL is owed $204 million by OL and approximately $137 million by OA. Due to prior uncertainty as to the amount, if any, of any further distributions to ARL or their timing, the debts are currently held at zero value in the ARL accounts.
Bentley's, the liquidators of both OL and OA, have advised us that two legal disputes involving OA and OL have been settled subject to court approval. Details of these disputes and the settlements are confidential.
We expect to learn within the next three months whether Court approval has been obtained which would remove two key obstacles to a conclusion of the Octaviar liquidations and enable the Octaviar liquidators to more accurately forecast ARL's likely recoveries from OA and OL.
There remains one legal dispute that could delay completion of the OL liquidation. Bentleys are unable to estimate how long this will take to resolve, and therefore cannot express an opinion as to when ARL can expect to be paid.
ARL remains unclear as to when any distributions will occur.
Giles Craig, Chairman of ARL said, "We believe that Asset Resolution Limited will receive a material amount from the Octaviar Limited and Octaviar Administration Pty Ltd assets. However we are unable to provide an exact estimate of amounts recoverable at this time.
About Asset Resolution Limited
Asset Resolution Limited (NSX:ASS) is a company whose board has significant experience and connections in the optimal realisation of mortgage loans and distressed assets.
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