Crunch vote looms for lender Cattles

Batley-based Cattles needs the support of creditors at today’s meeting in Nottingham to forge ahead with its de-listing and restructure. If it fails to win creditors’ backing, administration is likely.

Shareholders yesterday voted in favour of the scheme of arrangement by 93.1 per cent. Their payoff is worth just £5.3m, but paves the way for it to be taken private by a newly-formed company, Bovess.

“(Shareholders’) support for the proposed shareholder scheme of arrangement will assist the board in achieving the best possible outcome for shareholders and creditors of the Cattles group as a whole,” said executive chairman Margaret Young.

However, the shareholder settlement requires the support of at least 75 per cent of voting creditors today. Bondholders and banks, led by Royal Bank of Scotland, are together owed about £2.4bn of debt by Cattles and its main subsidiary, Welcome Finance.

Cattles is braced for a backlash from bondholders – some of whom walked away from negotiations in September – after being told they will receive just a fraction of what they are owed. If the restructuring is passed, bondholders owed £750m will get £49m, or up to £39m if it is rejected.

Private shareholders are also trying to muscle in on today’s vote by tabling amendments – but will receive nothing if the vote fails.