Banking extension for CPP
CPP has been given a lifeline after agreeing a two week extension with its lenders to help it explore “alternative financing and strategic options”.
TheBusinessDesk.com reported last Thursday how the credit card insurer’s finance facilities with its lenders were set to expire over the weekend.
If no agreement was reached York-based CPP, which saw founder Hamish Ogston say he would be prepared to buy the business for £1.7m last week, was likely to have gone into administration, putting more than 1,500 jobs at risk.
But now “constructive discussions” have seen its lenders agree a two week extension to the maturity of the group’s revolving credit facility until April 12.
“This extension will allow the group to continue discussions relating to a number of alternative financing and strategic options with the aim of concluding these discussions prior to the extended maturity,” CPP said.
“The board remains focused on reaching an agreed financing solution with a view to ensuring the viability of the group in the short and longer term, although there can be no certainty that such a solution will be found.”