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The receivers of failed Provincial Finance have upped their third repayment to debenture stock holders by 5c to 15c but say hopes of a full repayment of principal are fading.
The third payment takes repayments to date to 50c in the dollar. John Waller of Pricewaterhouse Coopers said the increased payment was a result of improved collection processes and early repayments by some lenders.
However, the faster than expected recovery of funds would reduce the amount of interest repaid. Waller's colleague Maurice Noone said that could see repayment of principal top out a few cents short of a dollar.
Waller said Pricewaterhouse would make another quarterly repayment, probably in the 5c to 10c range, in June. He said discussions with other parties regarding a possible restructure or sale were continuing.
Provincial Finance went into receivership last year owing debenture stock investors $300 million after running into trouble making bad loans primarily in the Auckland used-car market.
Initially Waller had believed investors would receive "most, if not all" of their principal back.
Pricewaterhouse Coopers has brought civil proceedings against credit-checking agency Baycorp Advantage, now known as Veda Advantage, and used-car dealers the Osman family, who have left the country.
PwC is seeking up to $9 million from Baycorp Advantage over the falsification of credit information up to $17 million from the Osmans who operated car yards involved in securing questionable loans from Provincial.
