Provincial Finance debenture holders to receive third principal repayment April 5

By Caroline Salls

Pittsburgh, March 22 - Provincial Finance Ltd. will make its third principal repayment to debenture holders on April 5, amounting to a further NZ$0.15 on the dollar repayment, according to a report from receivers John Waller and Maurice Noone of PricewaterhouseCoopers.

This latest repayment brings the total over the past 10 months to NZ$0.50 on each invested dollar, and the total cash repaid to debenture holders to date is NZ$148.1million.

According to the release, the NZ$0.15 repayment represents a NZ$0.05 increase on the top end of the company's previously announced indicative payout range of NZ$0.05 to NZ$0.10 for this quarter.

Waller and Noone said the increase results from improvement in the collection of the company's finance receivables ledger, primarily through strengthening of collection processes; and higher-than-expected levels of early loan repayments from customers.

Provincial's receivers said it remains on track to make quarterly repayments to debenture holders, with the next repayment scheduled to be made in June, likely in the range of NZ$0.05 to NZ$0.10 on the dollar.

In addition, the receivers said their investigations have uncovered evidence of a series of alleged frauds committed against the company, and legal proceedings have begun, including taking steps to freeze assets of some parties involved in these alleged frauds.

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