Next chapter set to begin at Cattles
CATTLES, the sub-prime lender, will leave the London Stock Exchange on Monday, it has been confirmed.
The Batley-based lender’s ‘scheme of arrangement, which sees the group’s shares bought for £5.3m by newly-formed company, Bovess, was approved earlier this week by the High Court.
Bovess, which will now be run privately, is to collect out Cattles’ loan book.
Cattles has been in difficulties since 2009 when accounting irregularities were uncovered forcing it to make an extra provision of £700m for bad debts and leading to the suspension of its shares.
Before the recession, its equity was valued at almost £1.5bn.
Cattles’ shareholders, some of whom campaigned against the deal going through, are expected to receive their 1p per share payment by March 16.
Bondholders owed around £750m are set to receive £49m as part of a deal which saw them, noteholders and banks owed around £2.4bn by Cattles and its main subsidiary, Welcome Finance.
The Supreme Court ruled last year that the banks could recoup the largest proportion of Cattles’ outstanding loans.
Cattles’ executive chairman Margaret Young said: “The board of Cattles is pleased to announce that the various schemes of arrangement to permit the restructuring of the group’s finances, which received the sanction of the High Court on Monday, have today become effective. The restructuring is therefore now completed.
“This is in itself a significant achievement which seemed highly unlikely two years ago when we faced potentially the immediate financial collapse of the group.
“However, with the support of our main financial creditors and after an extended period of complex negotiations, we have stabilised the group’s financial position, implemented the managed contraction of Welcome Finance and to date collected over £1.1bn of its outstanding loan book, with more to come.
“We have restored the group’s two remaining trading subsidiaries, Shopacheck and The Lewis Group, to profitability and continue to develop both businesses.
“I believe this has produced the best possible outcome for all concerned, and I would like to thank the group’s creditors, the shareholders of Cattles and our loyal employees for their support through this difficult and challenging process.”
Meanwhile, shares in online search and directory firm Inforserve were cancelled on the Alternative Investment Market (AIM) today at the Leeds-based company’s request.
Infoserve, which is to change its name to CityVisitor Group after becoming private, believes the move will make it easier to attract investor interest.
