|
News Index
Next
Previous
Sub-prime
lender Cattles has revealed it is mulling a possible offer for the firm.
Cattles said it has been in "discussions for some time" with its financial
creditors about working on a buy-out of the company.
It is understood that creditors would use £5 million of the money that is
already owed to them to pay off shareholders of the company.
But to avoid creditors ultimately owning the company, all of Cattles assets
including its subsidiaries The Lewis Group and Shopacheck will be transferred to
a charitable trust.
Cattles said that the deal would leave shareholders with just 1p for every pound
they are owned.
A spokesman stated: "Any such offer would be likely to comprise solely cash
consideration".
Debt collection firm The Lewis Group is currently collecting the loan book of
Cattle’s troubled Welcome Finance division.
It is expected that it will take two to three years to collect the debts.
Cattles, which specialised in lending to people with low credit ratings, was
forced to disclose the discussions under stock market regulations, but warned it
could not guarantee that "any offer will ultimately be made or as to the times
and terms of the offer."
The firm recently reported it had swung to a £745.2 million loss, reflecting a
loan loss charge of £794.3 million 2008.
The Lewis Group said it made a "satisfactory start" to 2010 after posting a £5.2
million pre-tax loss for 2008.
Source: Credit
Control Journal
|
