Unsecured Provident Capital creditors meet
Unsecured creditors of Provident Capital have voted today to maintain Tony McGrath and Joseph Hayes of McGrath Nicol as joint and several voluntary administrators of the collapsed fund manager and non-bank lender.
McGrath Nicol were appointed by Australian Executor Trustees Limited (AET) on September 18.
AET represents debenture holders and successfully petitioned the Federal Court in July to place Provident in receivership and to freeze its mortgage funds.
Phil Carter, Tony Sims and Marcus Ayres of PPB Advisory continue to represent AET debenture holders as receivers and managers of Provident Capital and to seek to sell properties secured against loans to pay back $70 million owed to Bendigo Bank and then re-start payments to debenture holders.
Debenture holders are secured creditors.
“The Voluntary Administration process is another step which AET has undertaken to preserve potential actions that the Company may have against third parties which could give rise to future recoveries to repay debentureholder claims,” explains PPB Advisory.
“It also allows unsecured creditors to lodge their claim against the company.
“As all Debentureholders are secured creditors by virtue of AET’s security interest, individual debentureholders are not required to prove their claim in the Voluntary Administration, nor are they required to vote at any meeting of creditors.
“Rather AET in its capacity as security trustee will represent all debentureholders in the voluntary administration process.
“Control of the Company’s assets and business operations will otherwise remain with the receivers and managers.
“Any updates on the status of the Receivership will be communicated directly to debentureholders via post or on our website," sasy PPB Advisory.
All creditors will receive a detailed report from McGrath Nicol on October 17 regarding the company’s affairs and recommendations as to its future, which could include Provident being liquidated.
A second statutory meeting of creditors is due to be held on October 24 where creditors will vote on the recommendations made by McGrath Nicol.
A decision on Provident’s future will be made at the second statutory meeting.
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