CPP hopes talks with lenders will secure its future

CREDIT card insurer CPP Group has said it is involved in “constructive” talks with its lenders and business partners over long-term financing arrangements for the business.

The struggling York-based company, which employs 725 staff, made an announcement on the London Stock Exchange following press speculation that it was closing in on a deal with its lenders to secure its future.

The group said: “As previously announced on June 28, the group is engaged in advanced and constructive discussions with its existing lenders and certain business partners with a view to putting in place a long term funding plan for CPP.

“The group has in place existing banking facilities which expire on September 30 and the board will make further announcements when appropriate.”

Last month CPP’s founder and majority shareholder Hamish Ogston walked away from a potential takeover of the business and stepped down from its board.

Back in March he had made a £1.7m offer, at 1p per share, to buy the company which he founded in 1980 and still holds 57% of the shares.

It has been struggling after being fined last year for widespread mis-selling of its products, which include wallet, mobile phone and credit card protection.

Earlier this year CPP lost major contracts with RBS and Santander banks.