Consumer lender Cattles hopes for debt extension

Jun 23 2009 By Huddersfield Examiner

STRUGGLING consumer lender Cattles said it was in "constructive" talks with its creditors in a bid to win more breathing space over its debts.

The Birstall-based firm faces looming deadlines on payments to bondholders and has until July 14 to refinance £500m in wholesale funding with a bank consortium led by Royal Bank of Scotland.

Cattles – which suspended its shares in April – is seeking a "standstill agreement" which will see these payments suspended while it resolves its future.

The company confirmed it is in "constructive discussions with its debt providers with a view to obtaining a standstill agreement".

Cattles warned in April that an independent review of its impairment provisions was likely to result in write-downs of up to £850m following a "breakdown in internal controls".

Cattles has about £2.4bn of debts, of which bondholders own about £700m. The rest is held by the bank syndicate.