Octaviar finally put into administration

Gold Coast-based property, tourism and financial services group Octaviar – formerly known as MFS – has been placed into administration.

Gold Coast-based property, tourism and financial services group Octaviar – formerly known as MFS – has been placed into administration.

The group, which was plunged into chaos earlier this year as a result of its mounting debt levels and the credit crisis, appointed John Greig and Nicholas Harwood of Deloitte as voluntary administrators on Saturday.

The company’s management hopes the decision to enter administration – which gives it a slim chance to continue trading – will result in greater returns for creditors and shareholders than would have been possible via a liquidation of the company and its subsidiaries.

Octaviar’s shares, which have been suspended for eight months, fell from around $4.50 at the start of the year to just 99c in mid-January.

Octaviar said in a statement that it was forced to appoint administrators after noteholders and unsecured creditors refused to accept a deal from the company.

Octavair’s decision to enter voluntary administration makes it the third Gold Coast company in a week to face collapse. Last week Asset Loans Group entered administration while a division of property group Raptis was placed in receivership.

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• Credit crunch claims Queensland finance company Asset Loans Group
• Gold Coast property developer Raptis Group on the brink