Suspended Pioneer pivotal

Despite Pioneer Credit’s shares remaining suspended on Friday, the future of the listed group is still considered pivotal to the debt-collecting industry.

The company is still awaiting auditors’ approval of its accounts and the thinking is its future is hanging in the balance.

A collapse of the company is likely to send shares higher in $1.55 billion rival Credit Corp, where it could take on a greater share of the market.

Credit Corp, Pioneer and Collection House are the three largest players in the local market.

The company posted an interim net profit of $5.46m in February and reaffirmed guidance for a 20 per cent lift in its earnings before interest, tax, depreciation and amortisation of more than $65m and 14 per cent increase in net profit to at least $20m.

It comes as the takeover by Next Capital of distressed hospitality finance company Silver Chef hangs in the balance, as revealed online by The Australian on Friday, with 19.99 per cent shareholder Blue Stamp Company planning to vote against the 70c per share deal on September 6.