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 meeting of creditors affected by the Scheme ('the Scheme Meeting').

Scheme of Arrangement update

The Scheme Meeting was held today and PFG is pleased to announce that c.98.3% by number and c.98.1% by value of the creditors who attended and voted at the Scheme Meeting, in person or by proxy, voted in favour of the Scheme. In absolute terms, over 428,000 of the approximately 4.2m creditors affected by the Scheme voted at the Scheme Meeting. Of these, approximately 420,000 voted in favour of the Scheme, while approximately 7,500 voted against.

The Scheme requires more than 50% of all creditors by number who vote on the Scheme to vote in favour, and the total value of their claims to represent at least 75% of the value of the claims of all creditors who vote. These thresholds have been met and consequently the Scheme has been approved by the creditors.

The Scheme will now be considered by the High Court at the sanction hearing on 30 July 2021, where the Court will either approve the Scheme or not. The judgment from the sanction hearing may be handed down either on the day of the hearing or a number of days later. The result of the sanction hearing will be announced as soon as possible after the judgment is received.

Malcolm Le May, Chief Executive Officer, commented:

"A clear majority of those creditors who attended and voted at the Scheme meeting approved the Scheme today. This represents a clear endorsement of the Scheme by the affected creditors and is a reflection of PFG's belief that the Scheme is fair and in the best interests of CCD's customers. As we announced last week, the FCA does not support the Scheme, and has summarised a number of concerns it has, but it has decided not to appear in Court to oppose the approval of the Scheme at the Court hearing on 30 July."