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Cattles investors call for company to close
Wednesday 6th January 2010In the latest twist in the tale of troubled doorstep lender Cattles, shareholders have demanded that the company is wound up.
A shareholder action group now has over 200 members, with around 22 million shares, and is urging for the subprime lender to enter insolvency so that a legal case can be brought against some of its former employees.
However, despite its problems, Cattles has refused to wind up the company. It is thought to be trying to recover up to £1.9 billion in outstanding customer loans in order for it repay creditors some of the £2.7 billion owed to them.
Cattles has maintained that consumers will be reluctant to pay back their loans if the group closes down.
During the last year, shares in the lender have been suspended, and seven directors were dismissed after an accounting error revealed an £850 million black hole in the company’s finances. The chief executive and chairman also left shortly after the “breakdown in internal controls” was uncovered.
Cattles executive chairwoman, Margaret Young, has been quick to reject the move, saying: “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.”
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