Payout for Provincial Finance investors
Provincial Finance’s 11,000 debenture-holders will receive another 8c next month, taking their total recovery to 90.5c in the dollar in just over two years since receivership.
That is one of the few pieces of good news in a sector littered with more than 25 collapsed finance companies.
Provincial receiver Maurice Noone said the 8c payment would be made on September 12. An additional small payout would be made related to litigation against Veda Advantage, and that court hearing was expected to start early next year. It was unclear when the payout would be.
Receivers Noone and John Waller, of accountants PricewaterhouseCoopers, have sold the remaining loans to Bluestone, a big Australian financial services lender. They would not reveal the price.
Provincial was one of the big and early finance firm failures, in May 2006, when it collapsed owing 11,000 debenture-holders almost $300 million.
Bluestone was retaining the Provincial staff of about 30 whose efforts in collecting the loans were the key to the high loan recovery and payment of debenture-holders, Noone said.
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Tags: Finance