Provident Capital in receivership

The Federal Court late on Tuesday confirmed the appointment of Philip Carter, Tony Sims and Marcus Ayres from PBB Advisory as receivers of Provident Capital, a Sydney-based finance company. The court had stayed orders first made late last week to allow the company time to appeal.

Bendigo and Adelaide Bank, a secured creditor of the firm, provided $91 million in funding to Provident based on the December 2011 financial statements.

More than 3000 investors are owed $125 million.

In April the financier said it would cease to accept new investments in its debentures.

Three weeks ago Australian Executor Trustees, which supervises the firm's debenture program, obtained an order from the court that froze redemptions from the firm's fixed-term investments.

PBB said in an advisory at its website yesterday that "it is appropriate to cease business activities whilst they attempt to work through the issues within the portfolio."

This includes a suspension of redraws on residential loans along with an end to new lending.

The firm had around 150 loans with a face value of $176 million according to the December 2011 half year financial statements.

Provident incurred a loss of $9.1 million over the half year to December 2011, a loss that triggered intervention by the trustee.