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ARTICLE · 12 OCTOBER 2021

Recent CVAs, Schemes And Restructuring Plans

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Provident SPV Ltd ("Provident") was a special purpose vehicle set up to assume liability for certain debts of two companies (the "lenders") in the Provident Finance group of companies.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Alexandra Wood
Alexandra Wood
Hannah Davies
Hannah Davies
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High Court sanctions scheme of arrangement proposed by the Provident Finance group

Provident SPV Ltd (“Provident”) was a special purpose vehicle set up to assume liability for certain debts of two companies (the “lenders”) in the Provident Finance group of companies.  The business of the lenders was the provision of small loans to individuals on low or moderate incomes. The interest rates charged were very high. Those companies perceived that large numbers of their borrowers, or guarantors of the borrowers, had or may have claims against them based on a number of statutory and other grounds, and in particular that they failed to carry out checks as to the creditworthiness of proposed borrowers or to assess the suitability of proposed loans or guarantees. Claims had been brought against the lenders over a number of years and the lenders did not know how many more claims might be asserted in the future. The anticipated level of claims could well have exceeded £1

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