Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Lee Doyle

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

Provident Capital: "investors have not received any payments past five months"

Posted by on in Bank Collapses
  • Font size: Larger Smaller
  • Hits: 2562
  • 1 Comment
  • Print

Frustrated Provident Capital debenture holders to vote on fairer distribution policy at December 13 meeting

--By Larry Schlesinger [19 Nov 2012]

--A meeting of Provident Capital ["PC"] debenture holders has been called for December 13 with the aim of voting on a new arrangement, which receivers PPB Advisory -- who have recovered funds from just two of the 49 loans -- believe will result in a more efficient and fairer distribution of money following the non-bank lender and mortgage fund manager being declared insolvent.

PC -- a lender of last resort -- collapsed in July leaving around 3,500 small investors who placed their savings in Provident’s fixed interest debenture fund out of pocket with an average investment size of $30,000.

The fund was frozen when Provident collapsed and investors have not received any payments in the past five months.

Since their appointment PPB Advisory have recovered funds from just two of the 49 loans in the fixed interest debenture fund totalling $4.8 million with only one loan discharged in full, --leaving 48 loans undischarged with a closing book value of $109.9m as of September 30.

The receivers have also returned $5.6 million (six loans) of the $74.2 million owed to Adelaide and Bendigo Bank, which must be repaid first before debenture holders can receive payments.

Receivers are marketing another three properties for sale, but have identified six properties "which are not suitable for sale at this time, predominantly due to planning issues".

Most of the mortgages were provided to property developers on very high interest rates that could not secure bank funding.

“The Receivers understand the frustration of debenture holders that we are unable to commence distributions at this time,” says PPB advisory in a note on its website.

At the December 13 meeting, debenture holders will be asked to vote on a proposal to amend the debenture trust seed to facilitate the new payment structure and will also receive an update from PPB Advisory on its efforts to discharge loans.

Currently the trust deed provides that interest will be payable before principal.

The proposed amendment of the trust deed is designed to facilitate the payment of interim distributions in the following order:

  • first, the return of interest accrued but unpaid as at 3 July 2012 on all debentures (whether interest was paid periodically or on maturity);
  • second, capital (as in the face value of your debenture); and
  • finally, in the unlikely event that there is any surplus, interest at the rate of 10% per annum for the time which the face value of debentures remained unpaid.

The outcome of the vote and the wishes of debenture holders will be taken into account at a court meeting on December 17, where the receivers will propose the amendment.

An informal information session will follow with debenture holders invited to submit questions prior to the meeting.

A meeting will be held in Sydney and broadcast in Melbourne, Brisbane, Adelaide and Perth.

Debenture holders can either vote in person or by proxy.

Last modified on
Rate this blog entry:


  • doyla66
    doyla66 Monday, 19 November 2012

    The properties to be liquidated: these were from PC loans? Classic scenario that we've all been dreading?
    "Planning issues" - more information needed PPB ...

Leave your comment

Guest Thursday, 26 November 2020