Cattles urged to take bigger hit on Welcome
CREDITORS of Welcome Financial Services have told business owner Cattles that it may have to take a bigger hit in any restructuring deal.
Last month, troubled lender Cattles announced it was in discussions with creditors over a “consensual restructuring” of Welcome Financial and was willing to compromise its inter company debt claims against the company for “not less than £39m”.
However, Cattles has now revealed that while representatives of key WFS creditors continue to support that restructuring in principal they have also indicated the amount “may be less than £39m”.
In a stock market update on the restructuring, Cattles said it was continuing to discuss the matter with WFS and creditors.
Cattles has been in difficulties since April 2009 when an £850m black hole was uncovered in its accounts. It has previously described its shares as having “little or no value”.
The company has said it would use the money secured as a result of a deal over WFS to help meet its debts to creditors which are estimated at £2.8bn.
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