17 May 2009

Final payouts from failed finance company

6:57 am on 17 May 2009

The receivers for failed Christchurch finance company Provincial Finance have made final payouts to debenture holders.

Provincial went into receivership on June 2, 2006 owing 11,000 debenture holders almost $300 million.

The company failed after it moved into the Auckland used car market, where it built up millions of dollars in bad debts.

It was among the first of many finance companies to go under during the past three years.

Provincial's receiver, Maurice Noone of PricewaterhouseCoopers, says payments to debenture holders amounted to just over 92 cents for each dollar invested.

The total amount repaid will be $273 million.

Mr Noone says preference shareholders and unsecured creditors will not receive any return from the receivership, as had previously been announced.