Provincial Finance Receivership Concludes

Total returned 92.2 cents

15 May 2009

The receivers of Provincial Finance Limited, and its wholly owned subsidiary Consumer Credit Limited (“Provincial”), today advised that debenture holders would receive the final payment of the receivership this month, bringing total repayments to 92.2 cents in every dollar.

Provincial was placed into receivership on 30 May 2006, owing 11,000 debenture holders approximately $296.1 million.

PricewaterhouseCoopers partner and Provincial receiver Maurice Noone says that all assets of Provincial Finance Limited had now been realised, including the satisfactory settlement of the claim against Veda Advantage. “I am very pleased to advise that the tenth and final pro-rata principal repayment to secured debenture holders will amount to 1.7 cents in the dollar,” he says. “This will bring the total pro-rata principal repayments made by the Receivers to 92.2 cents in each dollar deposited with Provincial.”

The total cash repaid to secured debenture holders from the receivership will be $273 million.

Maurice says the recovery of 92.2 cents in the dollar over the three years is seen as a positive outcome for the receivership. “I am pleased to see the receivership reach its conclusion with a significant return for debenture holders. A number of parties have contributed to the outstanding result, and the staff and management of Provincial Finance Limited deserve special thanks for their dedication, ongoing hard work and support in achieving this outcome,” he says.

Perpetual Trust chief executive Louise Edwards thanked investors for their patience following its decision to put the company into receivership. “As a trustee we will do what is necessary to protect the interests of investors. We appreciate the hard work of the receiver and investors’ understanding, and we are confident the majority of debenture holders will be happy with this return,” she says.

Maurice says: “As we have previously advised, unfortunately preference shareholders and unsecured creditors will not receive any return from the receivership.”

A final update to investors outlining the final payment will be sent later this month.

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