Provident Capital debenture holders get first payments since July

Provident Capital debenture holders have been repaid all the interest they have accrued since the mortgage lender and mortgage fund manager was placed in receivership more than six months ago.

Debenture holders received 100 cents in the dollar of interest accrued but unpaid as at 3 July 2012 on all debentures, whether interest was paid periodically or on maturity, said receivers and managers PPB Advisory.

PPB Advisory are the court-appointed receivers acting on behalf of Australian Executor Trustees Limited (AET), which represents around 3,500 small investors, many of whom invested their retirement earnings into high-interest Provident mortgage funds.

The mortgage funds were lent-on as first mortgages to property developers, who could not secure funding elsewhere - most of the loans subsequently defaulted.

“We will continue to make interim distributions to debenture holders over the course of the receivership, as and when funds become available,” said PPB Advisory.

The ability to make the interim payment and future payments follows a proposed amendment to the Trust Deed being approved by debenture holders on December 13 and subsequently ratified by the Federal Court of Australia on December 17.

Provident creditors voted to wind up the company on October 24 with Tony McGrath and Joseph Hayes of McGrath Nicol appointed as joint and several liquidators