Small investors hit as fund manager Provident Capital bought down by bad property loans

Fund manager and non-bank lender Provident Capital Limited has been placed in the hands of receivers PPB on the orders of the Federal Court. The court order follows Provident’s $120 million fixed interest debenture fund being temporarily frozen last month with 3,500 small-time investors having an average of $30,000 invested in the fund. A report […]

Larry Schlesinger 04 July, 2012

Fund manager and non-bank lender Provident Capital Limited has been placed in the hands of receivers PPB on the orders of the Federal Court.

The court order follows Provident’s $120 million fixed interest debenture fund being temporarily frozen last month with 3,500 small-time investors having an average of $30,000 invested in the fund.

A report last month by PPB found a $28 million gap between Provident’s property valuations and PPB’s assessments.

The court appointed Phil Carter, Tony Sims and Marcus Ayres of PPB Advisory as receivers following an application by Australian Executor Trustees Limited (AET), a trustee for Provident Capital debenture holders.