Creditors oppose winding up Cattles
Dec 23, 2009
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Sub-prime lender Cattles says that its financial creditors do not want the company to be wound up.
On 16 December, shareholders in Cattles demanded the liquidation of the company and the resignation of its board at a highly fraught general meeting. The meeting had to be adjourned twice while the board took legal advice on how to respond to shareholders.
The shareholders wanted creditors to sanction the £500,000 needed to petition for the winding up.
The creditors believe that winding up the company would harm its value.
Executive chairman Margaret Young said: "We appreciate the disappointment felt by shareholders but there can be no case for winding up the Company when this would be highly detrimental to the interests of all of our stakeholders".
Cattles is winding down its Welcome Finance business over the next three years. That will leave it with two businesses - Shopacheck and The Lewis Group.
Shares in Cattles were suspended on 13 April. Management admits that "the shares are likely to have little or no value".
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