PFG.L Regulatory News (PFG)

Provident Financial plc

Scheme of Arrangement update

Provident Financial plc ('PFG' or 'the Group'), the leading provider of credit products to consumers who are underserved by mainstream banks, publishes an update on the Scheme of Arrangement ('the Scheme') proposed by Provident SPV Limited ('Company'), following the sanction hearing which took place at the High Court on 30 July 2021.

Scheme of Arrangement update

The sanction hearing for CCD's proposed Scheme was held at the High Court on 30 July 2021 and PFG is pleased to report that the Court's judgement was received today sanctioning the Scheme, following strong creditor approval.

PFG will now move forward with implementing the Scheme. The Scheme is expected to become binding by 5 August 2021 and to be implemented towards the end of August. Therefore, the deadline for the submission of claims is expected to be towards the end of February 2022. It is anticipated that all payments to creditors would have been made, and the Scheme will close, towards the end of 2022.

Malcolm Le May, Chief Executive Officer, commented:

"The Court has approved the sanctioning of CCD's Scheme, which is a positive outcome for CCD's customers with valid claims under the Scheme, as it provides access to a redress payment which would not have been possible had the Scheme not been approved. We believed from the outset that the Scheme was fair and that it offered the best outcomes for customers.

The Court sanction enables us to move forward with the Scheme and we expect that creditors will receive redress payments in the second half of 2022. As we have stated previously, the managed run-off of the CCD business is progressing well and we will provide the market with a further update as to how the Group is positioned for the remainder of 2021 and beyond with our interim results on 11 August 2021."