KEY POINTS:
Receivers for Provincial Finance - which collapsed last year - yesterday announced a further 7.5c payout to debenture investors, taking returns to 67.5c in the dollar, but warned that under a drawn-out receivership, future payments would slow to a trickle.
However, Maurice Noone of PricewaterhouseCoopers said discussions were continuing on an alternative scenario that would improve the outcome for all stakeholders, including debenture holders.
Noone said the 7.5c payment, the fifth since Provincial collapsed in June last year owing debenture investors $300 million, was "a pretty good outcome".
Early in the receivership PricewaterhouseCoopers said investors would get "most, if not all" of their principal back. "But unfortunately as the loan book gets smaller, obviously collections lessen, so the payouts in future will be less. This is probably the last of the big ones."
Meanwhile, PricewaterhouseCoopers had continued to discuss restructuring or sale proposals with a number of parties. They included a restructuring plan put forward by Provincial's former chief executive and shareholder John Edilson.
However "with the recent well publicised issues facing the finance company sector" some of the potential opportunities, including Edilson's, had become unworkable, said Noone.
Nevertheless, Noone and colleague John Waller were still in discussions with other parties. "We hope to have something to put to stakeholders in the near future that would on balance, arguably produce a better outcome for all stakeholders including debenture holders, rather than an ongoing and protracted receivership process over the next three to four years."
Noone expected to make a statement about the proposal within the next month. The plan under discussion was not a simple sale of assets, neither would it see the company trade again.
"We're unlikely to see the rebirth of Provincial Finance in its own right but may well be part of something else going forward."
Noone said shareholders and other stakeholders, including Edilson, all had a role to play in enabling the other proposal to come to fruition.
