No backdating Octaviar

Photo / Supplied

Octaviar Ltd had no culture of backdating documents, the co-founder of the failed Gold Coast-based company has told the New South Wales Supreme Court.

The Sydney court heard on Monday that shareholders' agreements relating to the selldown of an Octaviar subsidiary in New Zealand were supposedly signed on June 29, 2006.

But a copy of an email sent from chief financial officer David Anderson to co-founder Michael King on July 24, 2006 suggested the shareholders' agreements had yet to be signed.

King told the court it was not the practice of the company to backdate documents.

"As far as I am aware, there was no process or culture of backdating documents," King said in response to a question from barrister Adam Bell, SC, acting for the liquidator.

King was appearing in court at the liquidator's examination of Octaviar, which was previously known as MFS and collapsed in 2008 owing about A$2 billion ($2.5 billion) to creditors.

The company was founded by King and Phil Adams.

The selldown related to New Zealand-based MFS Pacific Finance, with MFS to sell 60 per cent of the company to so-called "friends and family", but retain management rights.

Liquidator Kate Barnet from Bentleys Corporate Recovery is trying to determine when the company became insolvent, with the focus on about A$1 billion in inter-company transactions.

The court also heard that one MFS venture - Young Village Estates - was sold after facing negative publicity regarding the removal of elderly residents from existing aged-care facilities.

Bentleys has recovered about A$145 million since being appointed liquidator last September.

The examination before senior deputy registrar Andrew Musgrave continues.

Former director Rolf Krecklenberg is due to appear tomorrow and on Friday.

- AAP