Troubled Cattles accuses sacked directors of misleading company

SUB-PRIME lender Cattles has accused former directors of providing "misleading information" as it revealed a huge increase in 2008 losses and warned of more to come.
By The Newsroom
Published 13th May 2010, 10:31 BST
Updated 13th May 2010, 12:05 BST

Cattle's losses reach 745m

The Batley firm said the decision by former directors to withhold information had hidden the true state of its loan book and the high level of arrears.

New chairman Margaret Young said that, despite serious challenges by non-executive directors, the former directors had assured them that there was no reason for concern.

Hide Ad
Hide Ad

Cattles is now looking at making claims against third parties, which could include six sacked directors and former auditor PricewaterhouseCoopers.

The group lent money to people with poor credit ratings but last year uncovered a huge accounting failure which hid a mountain of bad debts.

It has been unable to come up with a viable plan that would allow it to resume lending and is now focusing on clawing back loans to repay creditors.

Ms Young expressed sympathy for investors who saw the value of their shares fall by 97 per cent before being suspended in April 2009.

"I share your anger about what has happened. Like you, I feel very let down by certain former executives," she said.

Related topics:PricewaterhouseCoopersBatley