Payouts for Provincial and Western Bay
The receivers of Provincial Finance and Western Bay Finance have both announced payouts to investors today.
Friday, December 1st 2006, 12:44PM
This payment of 10 cents in the dollar will bring the total repayment since the receivers were appointed to 35 cents in the dollar.
The second repayment 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 May 30.
Waller says 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 says. “We are focusing on running the business as efficiently as we can in order to maximise the debenture holders’ return.”
Noone said the receivers remain confident investors will receive “most, if not all” of their principal back in due course.
He says 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 10 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.
Meanwhile the receivers of Western Bay Finance have likewise announced a second capital repayment to debenture holders. Earlier they sold a significant portion of the loan book to Finance Now.
“The balance of the company's loan book has been sold to a syndicate of investors," receiver Brendon Gibson says. "That sale will allow us to make a further capital repayment to debenture holders in early December. Following that payment we will have returned $37.5 million to debenture holders." Debenture debt stood at $48.5 million at the time of receivership in August. Investors have had 77% of that money repaid within four months.
"This is the vast majority of the assets now realised and we will be realising the balance of the assets over the next 3 to 4 months.
"Accordingly we expect the final pay out to debenture holders will be available in mid 2007.
“We are currently projecting this will take total returns to debenture holders to in excess of $39 million, or between 81 and 82 cents in the dollar on debt as at receivership. We are very pleased that recoveries will therefore exceed even the upper range of our initial estimate of 75-80 cents,” Gibson says.
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