CPP considering compensation scheme
The York-based company, which is still being probed by the Financial Services Authority for mis-selling, said a “scheme of arrangement” is being considered “as a potential vehicle for customer redress”.
CPP has already set aside £25m to repay mis-sold customers, but has warned this could rise further.
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Hide AdThe group’s £80m debt facility with Barclays, Royal Bank of Scotland and Santander expires in March 2013, and last month CPP said it was exploring “alternative financing and strategic options”.
A scheme of arrangement is a court-approved process which forms a binding agreement between a company and its creditors over their claims.
In a statement CPP added: “CPP remains committed to achieving an outcome that is acceptable to all stakeholders and which will enable us to progress and provide a greater degree of certainty for the business.”