September 8 2008

New Zealanders who put money into OPI Pacific Finance today approved aspects of complex arrangements to save the company whose situation remains fluid.

OPI Pacific Finance's debenture holders and note holders today passed an extraordinary resolution which will allow OPI Pacific Finance to enter into Secured Debt Arrangements with the Octaviar Group and to continue with a moratorium agreed in May. The arrangement gives them a secured position rather than relying on an unsecured put option under which Octaviar has obligations if loans go bad.

OPI Pacific Finance note and debenture holders separately have to decide on a cash offer from Octaviar and the deadline for that offer was today extended to September 30.

But Octaviar is still facing liquidation proceedings from other creditors.

Octaviar owns 38.5 percent of OPI Pacific Finance parent MFS New Zealand, now OPI New Zealand.

There has already been a payout of some principal and another is planned. Investors wanting to exit can get 22.5 percent in the dollar for the remainder owing under a cash offer being proposed.

At today's vote 97.14 percent of secured debenture holders who voted by value were in favor of the extraordinary resolution.

Approximately 65 percent of secured debenture holders by value voted.

While 99.63 percent of unsecured note holders who voted by value were in favor. Approximately 84 percent of unsecured note holders by value voted.

OPI Pacific Finance was forced to default on repayments in late January when Octaviar declined to provide further support, because of its own difficult financial position.

Source: http://www.nbr.co.nz/