Court battle ends: Provident Capital in receivership

by Mackenzie McCarty04 Jul 2012

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


  • by Bluey 4/07/2012 10:50:18 AM

    This is indeed a sad day. A good company railroaded into receivership, without due cause. Independent audits absolved the company of any financial difficulties but the Trustee went for the jugular. Seems someone high up with an axe to grind is behind this disgraceful episode. My thoughts are with the staff, owners and investors who have the most to lose.

  • by Qld Broker 4/07/2012 10:56:07 AM

    This appears to be one of a list of problems we as brokers have to deal with utilising boutique type lenders and Mortgage Managers as a pose to the big banks. We are asked to use them to help our current finance sector become a more even playing field but it has to be said at our risk and that of our clients. Not good enough.