Provident Capital Limited
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| Provident Capital Limited | |
|---|---|
| Appointment type | Court Receivership |
| Appointment date | 03 July 2012 |
| Company details (ACN) | 082 735 573 |
Important update as at 30 November 2020
Christopher Hill has retired from the partnership of PwC Australia. Consequently, on 30 November 2020, the Federal Court of Australia made orders to remove Christopher Hill as a Receiver of the Company and appoint Daniel Walley and Andrew Scott of PwC Australia as Joint and Several Receivers of the Company. The orders are attached below for reference.
Important update as at 27 June 2019
As at 30 June 2019, Kenneth Whittingham retired from the partnership of PwC Australia. Consequently, on 27 June 2019, the Federal Court of Australia made orders to remove Kenneth Whittingham as a Receiver of the Company and maintain Chris Hill of PwC Australia as sole Receiver of the Company. The orders are attached below for reference pursuant to the orders.
Important update as at 23 October 2017
We are pleased to advise that we have reached a settlement of the Director Proceedings in the amount of $14 million on a no admissions basis.
This settlement resolves Provident’s claims against its directors and follows a mediation held with Provident’s directors earlier this year .
The settlement has allowed for a sixth interim distribution to Debentureholders to be paid on 3 November 2017.
This distribution represents 6.5 cents in the dollar in respect of the face value of debentures and takes total distributions to Debentureholders over the course of the Receivership to date in excess of $23 million.
We are unfortunately not in a position to confirm the timing of future distributions due to the uncertainty surrounding the outcome of the realisation of Provident’s remaining assets. We however intend to continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
Please refer to our Report to Debentureholders dated 23 October 2017 for further information.
All Debentureholders should continue to contact the dedicated information line on (02) 8767 1194 with any further queries.
Important update as at 23 March 2017
We are pleased to announce that we have agreed to attend a mediation on 26 April 2017 for the purposes of resolving the Director Proceedings. We are currently liaising with our legal advisors to prepare for the mediation.
We intend to provide Debentureholders with an update on the outcome of the mediation process once completed.
Further details regarding the mediation are contained in our frequently asked questions for Debentureholders and can be found on our website.
All Debentureholders should continue to contact the dedicated information line on (02) 8767 1194 with any further queries.
Important update as at 11 March 2016
We are pleased to announce that we have entered into a litigation funding deed (the Funding Deed) with Claims Funding Australia Pty Limited (CFA) and Maurice Blackburn Lawyers for the purposes of prosecuting the Director Proceedings. The Funding Deed was signed effective from Friday, 11 March 2016.
Further details regarding this arrangement are contained in our Notice to Debentureholders dated 11 March 2016.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Important update as at 19 December 2014
We are pleased to advise that a fifth interim distribution to Debentureholders was be paid on 19 December 2014.
This distribution represents 2 cents in the dollar in respect of the face value of debentures and takes total distributions to Debentureholders over the course of the Receivership to date in excess of $14 million.
We are unfortunately not in a position to confirm the timing of future distributions due to the uncertainty surrounding the recovery of default loans along with the sale and settlement of security properties where Provident is mortgagee in possession. However, we intend to continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Important update as at 14 July 2014
We are pleased to advise that a fourth interim distribution to Debentureholders will be paid on 16 July 2014.
This distribution represents 2 cents in the dollar in respect of the face value of debentures and takes total distributions to Debentureholders over the course of the Receivership to date in excess of $11 million.
We are unfortunately not in a position to confirm the timing of future distributions due to the uncertainty surrounding the recovery of default loans along with the sale and settlement of security properties where Provident is mortgagee in possession. However, we intend to continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Update to debentureholders
Tax Statements 2013/14
Please be advised that the third interim distribution to Debentureholders paid on 15 October 2013 was a partial return of principal. Accordingly, this amount will not be subject to withholding tax.
No annual tax statements will be issued to Debentureholders.
Important Update as at 26 November 2013
We are pleased to provide an update on the examination of related third parties of the Company.
We confirm that the expected timing of the examination is proposed as follows:
| Party | Expected date |
| John Robertson (a valuer regularly engaged by the Company) | 6 December 2013 |
For further information regarding timing and location of the examinations, please refer to the Notice to Creditors dated 26 November 2013.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Important update as at 1 October 2013
We are pleased to advise that a third interim distribution to Debentureholders will be paid on 15 October 2013.
This distribution represents 2 cents in the dollar in respect of the face value of debentures and takes total distributions to Debentureholders over the course of the Receivership to date in excess of $10 million.
We are unfortunately not in a position to confirm the timing of future distributions due to the uncertainty surrounding the recovery of default loans along with the sale and settlement of security properties where Provident is mortgagee in possession. However, we intend to continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
We are also pleased to provide an update to Debentureholders for the 2013 Financial Year.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Important Update as at 13 June 2013
We are pleased to advise that a second interim distribution to Debentureholders will be paid on 21 June 2013.
This distribution represents 2 cents in the dollar in respect of the face value of debentures and takes total distributions to Debentureholders over the course of Receivership to date in excess of $7 million.
We intend to continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
Furthermore, further dates for examinations of the Company’s Directors have been arranged in June 2013. The likely order and expected timing of further examinations are proposed as follows:
| Party | Expected dates |
| John Sweeney | 17 June 2013 |
| Trevor Seymour | 18 June 2013 |
| Malcolm Bersten | 18 June 2013 |
| Michael O’Sullivan | 24, 25 and 26 June 2013 |
For further information regarding timing and location of the examinations, please refer to the Notice to Creditors dated 13 June 2013.
All Debentureholders should continue to contact the dedicated information line on +61 2 8767 1194 with any further queries.
Important Update as at 10 April 2013
We are pleased to provide an update on the examination of the Company’s Directors.
We confirm that the likely order and expected timing of the examinations are proposed as follows:
| Party | Expected date |
| Michael O’Sullivan | 16, 17 and 19 April 2013 |
| Malcolm Bersten | 22 and 24 April 2013 |
| Trevor Seymour | 22 and 24 April 2013 |
| John Sweeney | 24 April 2013 |
For further information regarding timing and location of the examinations, please refer to the Notice to Creditors dated 9 April 2013.
All Debentureholders should continue to contact the dedicated information line on +61 2 8280 7110 with any further queries.
Important Update as at 28 February 2013
We are pleased to advise that upon our application, the Supreme Court of New South Wales has ordered summonses to be issued for the examination of the Company’s Directors.
The examinations are scheduled to occur from 15 April 2013 to 20 April 2013 and will be open to the public to attend. Further information regarding the time and location of the examinations will be provided in due course.
The purpose of these examinations is to allow the Receivers to progress their investigations into the Company’s affairs in order to identify whether actions may be pursued against various third parties which could give rise to future recoveries to repay Debentureholder and Creditor claims.
All Debentureholders should continue to contact the dedicated information line on +61 2 8280 7110 with any further queries.
Important Update as at 12 January 2013
We are pleased to advise that the first interim distribution to Debentureholders was made on 11 January 2013.
The interim distribution represented 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.
We will continue to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
Future interim distributions will be capital in nature in accordance with the amended Trust Deed.
All Debentureholders should continue to contact the dedicated information line on +61 2 8280 7110 with any further queries.
Important Update as at 17 December 2012
The Receivers and Managers are pleased to advise that the proposed amendment to the Trust Deed was passed at the meeting of Debentureholders on 13 December 2012 and was subsequently ratified by the Federal Court of Australia on 17 December 2012.
The Trust Deed now allows the Receivers and Managers to make interim distributions to Debentureholders over the course of the Receivership, as and when funds become available.
It is anticipated that the first distribution will be made in early January 2013, subject to the availability of funds. The first distribution will be 100 cents in the dollar for the return of interest accrued but unpaid as at 3 July 2012 on all debentures (whether interest was paid periodically or on maturity).
All Debentureholders should continue to contact the dedicated hotline on +61 2 8280 7110 with any further queries.
Important update as at 20 November 2012
The Receivers and Managers have convened a Meeting of Debentureholders to vote on a proposed amendment to the Trust Deed.
The meetings will be held concurrently on Thursday, 13 December 2012 at the following venues and times:
| State | Venue | Address | Time |
| NSW | SMC Conference & Function Centre | Grand Lodge Room, Level 1, 66 Goulburn Street, Sydney NSW 2000 | 11.30am |
| VIC | Rydges | 186 Exhibition Street, Melbourne VIC 3000 | 11.30am |
| QLD | Christie Conference Centre | Caribbean Room, Level 1, 320 Adelaide Street, Brisbane QLD 4000 | 10.30am |
| SA | The Sebel Playford Adelaide | 120 North Terrace, Adelaide SA 5000 | 11.00am |
| WA | Parmelia Hilton Perth | Karri Room, 14 Mill Street, Perth WA 6000 | 8.30am |
Ultimately, the effect of the amendment on you will depend upon your own personal circumstances.
It is recommended that debentureholders read the Explanatory Statement to understand how the proposed amendment may potentially affect them.
Following the formal business at the Meeting of Debentureholders, the Receivers and Managers propose to convene an informal Information Session. Should you wish to pose a question at the Information Session, please return the questionnaire via post using the Business Reply Envelope enclosed within the Notice of Meeting prior to Monday, 10 December 2012.
Should the proposed amendment be passed at the meeting of debentureholders on 13 December 2012, and the resolution be subsequently ratified by the Court on 17 December 2012, it is expected that an interim distribution will be made shortly thereafter.
All Debentureholders should continue to contact the dedicated hotline on +61 2 8280 7110 with any further queries.
Important update as at 30 October 2012
The Receivers understand the frustration of Debentureholders that we are unable to commence distributions at this time.
There presently exists a conflict within the Trust Deed as to how interest repayments and other distributions are to be made to Debentureholders once the Company enters into Receivership.
On 3 August 2012, the Receivers made an urgent application to the Federal Court of Australia seeking directions regarding the appropriate treatment of distributions to Debentureholders. The Court however was not able to assist and considered that an amendment to the Trust Deed would need to be resolved by a Meeting of Debentureholders to overcome this inconsistency.
There is a manifest error within the Trust Deed as to what constitutes a quorum for a meeting of Debentureholders and, accordingly, it is not possible to hold a valid and legally binding meeting of Debentureholders until this is resolved. As a result, the Receivers have filed an urgent application with the Federal Court of Australia on 28 September 2012 for the purposes of:
- Resolving a manifest error in the Trust Deed that is silent on what constitutes a quorum for a meeting of Debentureholders (which requires an Order of the Court).
- Confirm that the Receivers would be justified in proposing an amendment to the Trust Deed which would allow us to confirm the appropriate treatment of claims from Debentureholders (which requires an order of the Court).
At present, the Trust Deed provides for an unequal distribution to equally ranked Debentureholders. This is inconsistent with other parts of the Trust Deed which require that all debentures regardless of their time of issue, maturity or interest rate, rank equally in priority of security in proportion to their face value if not repaid in full.
Details of the application and the proposed amendment to the Trust Deed have been published on our website at www.ppbadvisory.com.
We confirm that the application has now been heard and the Court is currently deliberating and will make a decision shortly. Once we have received their decision, we intend to communicate with all Debentureholders in writing as to the outcome of the application and provide further details of the proposed amendments together with the upcoming Meeting of Debentureholders.
All Debentureholders should continue to contact the dedicated hotline on +61 2 8280 7110 with any further queries.
Appointment of Liquidators
On 24 October 2012, creditors of Provident resolved that the Company be wound up and that Tony McGrath and Joseph Hayes of McGrath Nicol be appointed as Joint and Several Liquidators.
The Liquidation of Provident will now allow for a comprehensive investigation into the Company’s affairs to be completed. This may provide opportunities for us to pursue actions against various third parties which could give rise to future recoveries to repay Debentureholder claims.
It also allows unsecured creditors to lodge their claim against the Company. In this regard, we encourage all unsecured creditors of the Company to contact Adam Blogg of McGrath Nicol on (02) 9248 9950 or refer to their website www.mcgrathnicol.com for any further information.
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.
All Debentureholders should continue to contact the dedicated hotline on +61 2 8280 7110 with any further queries.
Appointment of Voluntary Administrators
On 18 September 2012, Tony McGrath and Joseph Hayes of McGrath Nicol were appointed as Joint and Several Voluntary Administrators by AET pursuant to Section 436C of the Corporations Act 2001 (Cth).
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.
It also allows unsecured creditors to lodge their claim against the Company. In this regard, we encourage all unsecured creditors of the Company to contact Adam Blogg of McGrath Nicol on (02) 9248 9950 or refer to their website www.mcgrathnicol.com for any further information.
Debentureholders are not required to prove their claim in the Voluntary Administration given that all Debentureholders are secured creditors by virtue of AET’s security interest. Further, AET in its capacity as security trustee representing all Debentureholders, will be responsible for lodging claims and voting at meetings in the Voluntary Administration.
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.
All Debentureholders should continue to contact the dedicated hotline on +61 2 8280 7110 with any further queries.
On 3 July 2012, Philip Carter, Tony Sims and Marcus Ayres of PPB Advisory, were appointed as Joint and Several Receivers of Provident Capital Limited (“PCL” or “the Company”) pursuant to an Order of the Federal Court of Australia. They were also subsequently appointed as Joint and Several Receivers and Managers to the Company on 10 July 2012 pursuant to a fixed and floating charge granted by the Company in favour of Australian Executor Trustees Limited.
This appointment follows concerns raised with the Federal Court by Australian Executor Trustees (“AET”) that there is a deficiency in net tangible assets available to meet the claims of Debentureholders.
In order to protect all Debentureholders’ interests, AET applied to the Federal Court, for leave to appoint Receivers to the Company.
The Federal Court granted its approval on 3 July 2012.
By acting now upon knowledge of the issue, AET has sought to ensure that steps can be taken by the Receivers to ensure all Debentureholders are treated fairly and equally.
Further updates regarding the status of the Receivership can be found on this website or by contacting PPB Advisory through the dedicated hotline +61 2 8280 7110.
Other
Any unit holders of the following funds for which Provident Capital Limited is the Responsible Entity (“RE”):
• Provident Capital Monthly Income Fund (“MIF”); and
• Provident Capital High Yield Fund (“HYF”)
should direct their queries to the unit holder registry service maintained by Mainstream BPO on +61 2 8012 8650.
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