9 Sep 2008

Stockholders accept plan in shadow of liquidation proceedings

7:03 am on 9 September 2008

Stockholders in the collapsed finance company OPI Pacific Finance have voted for a plan that could see them receive some eventual return.

Investors voted on Monday in favour of a new agreement with OPI's Australian parent Octaviar, which may see them receive up to 22.5 cents back for every dollar owed.

OPI ran into trouble in January when Octaviar withdrew its financial support, leaving it owing 1200 investors about $335 million.

But the outcome hinges on Octaviar staying afloat, and that is uncertain as it faces liquidation proceedings on Tuesday and Wednesday in Australia.

Opi Pacific director Jason Maywald says legal proceedings will be lengthy if Octaviar is forced into liquidation and Opi has to try and get as much money as it can.

He says an agreement with Octaviar is the best outcome in the meantime for the company and its stockholders, while the company remains in a moratorium.