Provident Capital Limited (Receivers & Managers Appointed) Debenture Holders Meeting 13 8 2012

by BourkeStreet
13/08/2012

Provident Capital Limited (PCL) lent to riskier end of the market

PCL lent to people who couldn’t borrow money from elsewhere

Now liabilities are greater than assets

29 June 2012 PCL placed into receivership

Loans to commercial, residential, construction & rural developers

Debenture Holders lent $130M

PCL made 110 loans & 90% of these now bad & in arrears

$51.1M loans in arrears for more than three years

120 debenture holders attended meeting

Largest loan is $22.4M, and four years in arrears

There are 3,500 PLC debenture holders

PPBAdvisory are PCL receivers and managers, they get paid $620 per hour

Was the PCL a “ponzi scheme”?

http://www.youtube.com/watch?v=QUdqpwSBZ...

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