Provident Capital investors lose 84%

Debenture holders in Provident Capital will recover only 16 cents in the dollar following the demise of the mortgage firm in mid 2012.

By contrast, Bendigo and Adelaide Bank and some other investors recovered 100 cents in the dollars on loans secured by more satisfactory asset pools.

In July 2012 the Federal Court appointed Philip Carter, Tony Sims and Marcus Ayres from PPB Advisory as receivers of Provident Capital, a Sydney-based finance company.

PPB's report for the year to December 2014, released last week, shows debenture holders have so far been paid 12 cents on their loans and can expect another four cents in the dollar.

The timing of this distribution is "uncertain as it is subject to the realisation of the remaining non performing loans," PPB said.

Some equity on a loan portfolio pledged to Bendigo Bank is available for release.

ASIC earlier this year banned former chief Michael O'Sullivan from managing a corporation for five years and from providing financial services for seven years.


PPB also started proceedings against directors for a "breach of their duties of care and diligence."