“We’re on track to make a third repayment to investors of around 10 cents in the dollar in late March,” said receiver John Waller of PricewaterhouseCoopers. “This payment will be funded from further collections of the book, together with minor asset sales.”

He said investigations by the receivers have uncovered a series of alleged frauds against Provincial. ”We’ve commenced legal proceedings against Baycorp and other parties, and we’ve also taken steps to freeze the assets of those other parties.”

Fellow receiver Maurice Noone said the receivership was progressing favourably. “Nothing has occurred since our last report to cause us to alter our estimate that debenture holders should receive most, if not all, of their principal back. Repayments will be by way of dividend, but we are unable to give a definitive date for final payment at this time.”

Noone identified the three principal scenarios for realising value from the Provincial loan book – a wind-down of the business by the receivers, a restructure, or an outright sale of the business.

“In a wind-down scenario, we would continue to collect remaining loans to repay debenture holders’ principal and interest,” he said.

Discussions continue with potentially interested parties relating to the other scenarios but Noone said there was “nothing substantial” to report at this stage.

A copy of the receivers’ full report is available at PWC's site