Some money recoverable after Provincial collapse

There is good news for some people owed money following the collapse of finance company Provincial Finance.

Provincial, along with its subsidiaries South Auckland Cars Limited and Consumer Credit Line Limited, went into receivership in June.

The receivers say they will make a first interim repayment to debenture stock holders on September 29. Investors will get a better-than-expected payout of 25 cents in the dollar. Around 11,000 Provincial investors hold debentures worth $300 million.

Receiver Maurice Noone hopes to make another repayment in December, which is probably going to be between five and 10 cents in the dollar.

The situation is not so good for people holding preference shares in Provincial. They are unlikely to see any return on their investment.

Provincial was not the first finance company in the motor trade to go under this year; in May, National Finance 2000 and affiliated used car firm Payless Cars were placed in receivership.

- NEWSTALK ZB