Lender Provident Capital had receivers appointed last night after legal action by the trustees of its debenture fund.
Australian Executor Trustees (AET), Provident's debenture fund trustees, applied in mid-June for the appointment of a receiver due to a potential deficiency in Provident's net tangible assets.
AET feared that the group was putting investor equity at risk and was on the brink of insolvency.
Despite the appointment of PPB, Provident Capital maintains that it has the available net tangible assets to meet its obligations to investors and brokers.
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Provident Capital threatened by receivers