Cattles still unable to publish latest results
TROUBLED sub-prime lender Cattles said today that it is still not in a position to publish its half-yearly financial report by the end of August deadline.
The Leeds-based lender is required to publish its results for the six months ended June 30 by the end of the month under stock market rules.
However, it said it remained in “constructive discussion” with its key financial creditors towards achieving a formal “standstill”, which would permit restructuring discussions to commence.
It added that these complex negotiations would not be concluded for some time.
Earlier this month Cattles announced it was set to go to the High Court to determine whether its bondholders or bank lenders will have first call on its assets.
The lender, which discovered an £850m black hole in its accounts and has seen the departure of a series of senior executives including chief executive David Postings, is in talks with lenders to agree a formal standstill agreement after extending its £500m banking facilities until the end of the year.
The High Court move, which it said was backed by its creditors, will aim to determine whether bondholders of Cattles or bank lenders to its Welcome Finance subsidiary have first call on its assets.
The finance group’s shares have been suspended since April.
Trustees of the bondholders, represented by HSBC, are demanding immediate repayment of £400m of debt which had been due to mature in 2017. However its syndicate of 22 banks, led by Royal Bank of Scotland want their £500m of loans repaid first.
Cattles said in July it would not make a bond interest payment. The group sold its Cattles Invoice Finance subsidiary for £70m this week to private equity fund AnaCap Financial Partners.
