The stress in Victoria's debenture company sector before and after the financial crisis was a largely avoidable affair, caused mainly by dodgy valuations produced for antsy trustee companies, industry association Provic suggests.In a second round submission to the Financial System Inquiry, the Provic group describes itself as consisting of "six like-minded companies in Victoria and New South Wales issuing debentures in the form of 'secured Notes'."One must read on to see that this is half their former number, a result of debenture companies being one of many banking sub-sectors degraded by the crisis.Provic, centred in the Victorian countryside, tell the history this way:"In 2008, 12 member companies collectively managed A$1.2 billion, but since the global financial crisis a combination of circumstances and lack of desire to continue operating in an unpredictable market and regulatory climate six companies withdraw from Provic group membership and the industry. "Four of the member companies were taken over by banks or other institutions looking to expand their balance sheets. "Two additional companies went into liquidation returning around $0.92 in the dollar to investors even after the forced sale of assets and having met extraordinary expenses associated with liquidation and payments to trustees, valuers and auditing firms."Retail investors "received most of their investment money from the two companies that went into liquidation," Provic reiterates, but goes on to say that  there was " a strong belief among the group and investors that both of these companies were viable and profitable and that they fell victims to circumstances beyond their control in the form of faulty asset appraisals and should still be trading today. "They were declared technically insolvent based on fire sale valuations and where assets such as investments in CDO's were valued on the basis of 'mark to market' as opposed to 'market to market" assessments."The other four companies that surrendered their licences and assets to Bendigo bank and other institutions, did so because the risks of operating such companies were greatly exposing them to prospect of failure due to circumstances beyond their control."