Provident receivers to sell off bad debts

by Mackenzie McCarty05 Jul 2012

The newly-appointed receivers of Provident Capital will repossess the houses of defaulting borrowers.

News Limited reports that PPB, appointed as administrator of the lender on late Tuesday evening, would seek to recover funds for close to 3500 investors in Provident's fixed interest debenture fund.

Funds raised via the fund were used to lend to borrowers in often risky low-doc and no-doc loan scenarios, primarily via third party mortgage brokers.

PPB Advisory partner Marcus Ayres told The Australian the receiver planned to hold a meeting for investors in about a month, and would begin to realise the value of the group's assets.

PPB plans to recover funds by repossessing houses of defaulting borrowers and slowly releasing them into the market or by selling the defaulting loans if an investor can be found.

"This won't be a fire sale and we won't be putting all these properties out on to the market at the same time," Ayres told News Limited.

Related stories:

Court battle ends: Provident in receivership

Provident Capital threatened by receivers



  • by Lars West 6/07/2012 10:14:30 AM

    That will be interesting - will FOS and COSL waive their normal lengthy time delaying complaints process to assist the receivers??