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Trustee of Provident Capital Limited faces class action

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Media Release

Published on

Slater and Gordon has today announced plans to launch a class action on behalf of Australians who suffered financial losses after investing in collapsed debenture issuer, Provident Capital Limited (Provident).

The proposed class action will be brought against Australian Executor Trustees Limited, the trustee of Provident.

Slater and Gordon senior class action lawyer Odette McDonald said the firm has been approached by hundreds of people who lost money investing in Provident, many of whom are retirees.

"The trustee was obliged under the Corporations Act to protect the interests of debenture holders,” said Ms McDonald.

“In particular, the trustee was required to exercise reasonable diligence to ascertain whether Provident would have sufficient property available to repay debenture holders when their investment came due.”

The class action will argue that the trustee failed in its duties, and will seek compensation for the losses suffered by debenture holders as a result of those contraventions.

The class action will be brought on behalf of investors who acquired new debentures issued by Provident on or after 22 December 2010 and who have not been repaid the amount that they invested in full. The class action may be extended to cover debentures issued by Provident after 24 December 2008.

Slater and Gordon is experienced in pursuing class actions against trustees of debenture issuers. It ran a class action against Sandhurst Trustees, a subsidiary of the Bendigo and Adelaide Bank, following the collapse of property developer Fincorp, which resulted in a $29 million settlement. It is currently running a class action against the trustee of collapsed debenture issuer, Australian Capital Reserve.

Slater and Gordon is running the class action against Australian Executor Trustees Limited on a No Win No FeeTM basis.

Debenture holders are invited to contact Slater and Gordon on 1800 555 777 or provident@slatergordon.com.au if they would like more information about the class action.