Cattles facing court over debts (From Bradford Telegraph and Argus)

Cattles facing court over debts

9:24am Wednesday 8th July 2009 in

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Specialist lender Cattles is facing administration and court action unless it can resolve funding issues after failing to make an interest payment due to its bondholders.

Birstall-based Cattles said that holders of about £400 million bonds due for repayment in 2017 had not received the interest payment due on July 5.

Last week the troubled firm saw its chief executive David Postings leave and also dismissed six senior executives.

Its shares have been suspended on the Stock Exchange since April after it emerged that the lender had incorrectly deferred impairment charges on its loan book which led it to underestimate its bad debts by around £700 million.

Cattles, which employs 300 people at a Cleckheaton debt collection centre, said it was having discussions with its finance providers and that a further update on the situation was expected soon. The July 5 bond payment was the first of two deadlines faced this month by the company.