UK embattled lender Cattles is in talks with its bankers and
bondholders to “stabilise its financial position”.
The lender, which earlier this month said it was considering
disposing of Cattles Invoice Finance, one of the group’s
subsidiaries, said that no decision had been reached yet on the
issue.
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However, it said it is undertaking a series of actions including
the appointment of a new management team from both inside and
outside the company, as well as a controlled process of debt
recovery and cash collection, in order to reduce costs.
The company added that the impairment provisions review
concerning last year’s financial results – which is being
undertaken after it was found out that impairment policies had been
applied incorrectly – has made “significant progress”.
However, the work is expected to be completed only after the
discussions with Cattles’ debt providers are completed.
At the end of April, Cattles also announced its proposal to
close its direct distribution car retailer, Welcome Car Finance, to
improve its liquidity position.
The group, which suspended lending to new customers in Welcome
Finance earlier this year, said cash collections in the business
had been £202 million in Q1 09.
Antonio Fabrizio
