Banks agree to extend Cattles' £500m loan
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The beleaguered doorstep lender Cattles has extended its £500m credit facility until December, relieving some pressure as it battles to stay afloat.
The company's shares have not traded since April, when it failed to report its 2008 financial results. Eight board members, including the chairman, chief executive and finance director, were sacked without compensation earlier this month after an investigation disclosed irregularities in the way impairment charges were reported.
A consortium of banks, led by Royal Bank of Scotland, are owed £500m by Cattles, owner of the Welcome Finance consumer loans business. They have agreed to extend its loan facility, which was due for re-financing this week, until the end of the year.
The banks, as well as bondholders and other creditors, are still talking to the group's new management about its total debt of £2.4bn. Cattles, based in Batley, West Yorkshire, insists the negotiations are constructive, but some analysts have suggested that the lenders are trying to cut their losses.
The company has written no new business for months. Last year, the Financial Services Authority refused Cattles' application for a banking licence that it said was crucial for its plans. While yesterday's deal with the lenders is not a formal standstill agreement, pushing back the maturity date of the facility will give Cattles some breathing space. It refused to say how much of the facility had been drawn.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments