Michael O'Sullivan to appeal ASIC ban after Provident Capital collapse
The former director of collapsed debenture issuer Provident Capital, Michael O’Sullivan, has been banned from managing corporations for five years and from providing financial services for seven years by the Australian Securities and Investments Commission.
The ban follows an ASIC investigation that found O’Sullivan breached his duties as a director and failed to comply with financial services laws.
O’Sullivan was the managing director of Provident Capital from 1998 to January 2014.
"I intend to appeal the decision, obviously I will need to take advice," he told The Australian.
Provident Capital went into receivership in July 2012 and into liquidation a few months later, owing around $130 million to more than 3,000 debenture holders.
When Provident collapsed, it had 138 loans outstanding totalling $176 million.
ASIC said at the time, many of the assets that secured these loans had no recoverable value, including one that was held against a deferred tax asset. Its equity capital ratio had fallen to 2.7%.
