Published 25 August 2008
Provincial Finance Ltd’s receivers said on Friday they’d sold the remaining financial receivable ledgers of Provincial & subsidiary Consumer Credit Ltd and that an 8c payout would take distributions to debentureholders to 90.5c/$.
The receivers, PricewaterhouseCoopers partners John Waller & Maurice Noone, said Provincial had sold their remaining finance receivable ledgers to an entity managed by the Bluestone Group financial services business. Provincial was placed in receivership in May 2006, owing 11,000 debentureholders $296.1 million.
Mr Noone said: “We are pleased to announce that we have concluded this sale with Bluestone. Doing so allows us to make a further distribution to debentureholders of 8c/$, scheduled for Friday 12 September. This brings total distributions to $268 million, or 90.5c/$.”
The sale advances recoveries by about 2 years.
“Completing the sale de-risks the collection process and simplifies the receivership down to one primary issue, the litigation against Veda Advantage Ltd. It also has the additional benefit of providing for ongoing employment to nearly all the remaining Provincial employees with Bluestone.”
Bluestone was established in 2000 as a specialist financial services lender & asset manager and has provided over $5 billion of loans to over 20,000 Australians & New Zealanders. It manages a portfolio of about $3 billion in Australia & New Zealand. Bluestone is owned by a number of private & institutional shareholders, including Bank of Scotland International, UK fund manager Cambridge Place, Crescent Capital & management.
Mr Waller said one more distribution to debentureholders was likely, but the timing & amount would depend on the outcome of ongoing litigation. “Legal action against Veda Advantage is continuing and we will be holding a portion of the sale proceeds back to fund the litigation.”
Attribution: Release from receivers, story written by Bob Dey for this website.