Provincial Receivers Second Repayment to Investors
Friday 1 December 2006
Provincial Finance Receivers Make Second Repayment to Investors
The receivers of Provincial Finance Limited (“Provincial”), John Waller and Maurice Noone, partners at PricewaterhouseCoopers, today advised that a second interim repayment of principal is to be made to Provincial’s 11,000 debenture stock holders on 15 December 2006.
This second repayment will see Provincial’s debenture stock holders receive a further 10 cents in the dollar, bringing the total repayment since the receivers were appointed to 35 cents in the dollar. An initial repayment of 25 cents in the dollar was made to debenture stock holders on 29 September 2006.
The repayment on 15 December will total just under $30 million. Following this repayment, in excess of $103 million will have been returned to debenture stock holders following the receivers’ appointment on 30 May 2006.
John Waller said the upcoming repayment was made as a result of the continued collections of the Provincial loan book. “This repayment is principally being funded from operating cashflow,” he said. “We are focusing on running the business as efficiently as we can in order to maximise the debenture holders’ return.”
Mr Waller thanked Provincial staff for their professionalism and efforts since their appointment. “The Provincial team continue to work hard to achieve the best possible result,” he said.
Maurice Noone said the receivers remain confident investors will receive “most, if not all” of their principal back in due course.
Mr Noone said the previously announced strategy to make quarterly repayments remained in place. “We are aiming to make another repayment in March 2007 and this distribution is likely to be in the vicinity of five to ten cents in the dollar.”
Discussions with interested parties around restructuring the business or a sale of the consumer finance ledger were ongoing.
The receivers confirmed that there was no change in the position of preference shareholders. In the absence of a successful restructure they were “unlikely” to receive any return on their investment.