Cattles battles to stay afloat
Doorstep lender Cattles has today received some good news with confirmation that the company's £500 million credit facility will be extended until December. The company has been in disarray since the shares were suspended back in April after the company failed to issue report the accounts for the 2008 financial year. While this extension is good news for the company there is still a significant battle to fight.
The company currently owes a Royal Bank of Scotland led consortium of banks around £500 million, which relates directly to the credit facility. However it is estimated that the company has debts in the region of £2.4 billion due in the main to a rise in bad debts and the rejection of an application for a banking licence. A banking licence would have allowed Cattles to hold deposits on behalf of clients and potentially open up a new stream of funding.
Many people believe that Cattles will ultimately go under with the impression that many creditors are happy to keep the company afloat at the moment in the hope of cutting their losses in the short term. When you consider that no new business has been written for sometime it is difficult to see how the company can come back from the initial crippling blow brought on by the UK recession.
Share this..
Related stories
Is the stock market too risky?
Over the last few years many people have been asking themselves whether an investment into the stock market is a risky investment and whether other alternatives should be considered. The truth is that no investment is entirely risk-free and the amount of risk you're willing to take, the time span of your investments and your overall financial profile all need to be taken into account. This is even...
Read MoreHow can we avoid growth in insolvencies?
The news that more than 10,000 UK citizens are being declared insolvent each and every month is a damning indictment of the boom and bust cycle ever present in the UK. Personal debt is now in excess of £1.5 trillion and more and more UK consumers are going to struggle in the months ahead. Indeed, while an average of 10,000 UK citizens were declared insolvent each month in 2009 this could actually...
Read MoreCan the Conservatives win the next election?
As more and more people turn against Gordon Brown's Labour government the focus is starting to turn towards David Cameron's Conservative party and their potential for making the next government. One factor which has been thrown towards the Conservative party for some time now is a lack of detail to go with regard to their economic policy, should they finally make office.
David Camer...
Goldman Sachs plays down bonus payments
US financial giant Goldman Sachs has today played down bonus payments for employees with many people suggesting they have been under stated specifically to keep the US government happy. The shift in strategy regarding bonuses has benefited the bottom line although the company is still on track to put aside around $20 billion for bonuses this year. So what next for the US financial sector?
<...
UK mortgage lenders accused of cashing in on homeowner crisis
UK mortgage lenders are today accused of cashing in on the distress being experienced by many homeowners up and down the country. It would seem that many mortgage lenders are acting extremely quickly to repossess homes and accrue additional charges for those falling behind with their mortgage payments, at a time when the UK economy is struggling to grow. The Treasury select committee recently high...
Read More