Some Cattles Bondholder Creditors Exit Restructuring Talks
15 Septembre 2010 - 9:50AM
Dow Jones News
Cattles PLC (CTT.LN), a door-to-door lender which saw massive
losses during the financial crisis, said Wednesday that some of its
bondholder creditors have exited talks on how to revive the
company.
These bondholder creditors, who hold roughly one-third of the
value of the company's outstanding bonds, and their advisers "have
ceased and do not intend to re-instigate negotiations with Cattles'
other key financial creditors in respect of any solvent
restructuring" of the firm, Cattles said in a statement.
This forces the management of Cattles to continue restructuring
talks with the rest of its bondholder creditors and its main
creditor, Royal Bank of Scotland Group PLC (RBS).
The exit of the bondholders comes after the Court of Appeal in
May upheld a decision by the High Court to give RBS precedence over
bondholders in the ranking of creditors.
Cattles needs to be in a more solvent position to keep
collecting the money in its loan book. Otherwise, there wouldn't be
much cash to share amongst Cattles' creditors.
Despite the exit of some bondholders from the talks, Cattles
said "it remains in the interests of all parties to reach an
agreement."
"Therefore, Cattles and its advisers continue to engage in
ongoing constructive discussions with representatives of certain of
its key financial creditors still with a view to achieving a
consensual restructuring of Cattles' liabilities, including an
offer to acquire the share capital of Cattles at up to 1 pence per
share."
On June 2, it said the options being discussed with creditors
included a proposal under which a newly incorporated company would
make an offer to buy Cattles at a nominal value of up to 1 pence
per share.
The Batley, north England-based firm's board has said it
"regrets the serious loss" suffered by shareholders--whose shares
now have little or no value--but its legal obligation is to give
priority to the interests of the company's creditors.
It also said in June that it is clear the size of the deficit
from its 2009 accounts will have increased significantly from the
GBP745.3 million loss at the end of 2008 because of further
impairments on the loan book.
Cattles, which used to lend to people with poor credit
histories, only released 2008 results this May after it unearthed a
massive shortfall in its impairment provisions a year earlier.
-By Vladimir Guevarra, Dow Jones Newswires; +44 (0) 2078429486,
vladimir.guevarra@dowjones.com
Cattles (LSE:CTT)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Cattles (LSE:CTT)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024