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Citigroup to sell Cabot ?????


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May 12, 2008

"As a part of its recent announcement that it would shed up to $500 billion in assets, Citigroup will be winding down some of its investment funds acquired over the past few years. Sources inside the world’s largest bank (ranked by assets) say that one divestment coming soon will be United Kingdom-based debt buyer Cabot Financial.

Citigroup (NYSE: C) will be looking to wind down some of the investments it has made through acquired investment banks, including Nikko Principal Investments (NPI), a U.K. and Australian-based private equity business. Citigroup acquired NPI’s parent, Nikko Cordial, last year.

 

One of NPI’s largest investments is debt buyer and collection agency Cabot Financial, which it bought for nearly $480 million in 2006 (“UK's Leading Debt Purchaser Acquired for $479 million,” April 10, 2006). A source inside Citigroup told U.K. paper The Independent that Cabot would be one of the business divested by NPI.

 

The move is part of Citigroup’s announced plan to shed non-core assets in the next couple of years (“Citi to Shed $500 Billion in Assets,” May 9).

Kent, England-based Cabot is one of the largest debt buyers in Europe, employing nearly 400 people."

 

 

 

with the recent CITIGROUP redundancies is the day of the sale of Cabot now much closer ??????

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Rats, Sinking, Ship

 

Please form a sentence from these words

 

Could be the death knell for the Debt Collector as we know it.

 

Think about it, Most banks sell debts because there is risk associated with the collection of debt.

 

With the onset of the revised CCA documents, only the latest debts are virtually assured to be enforceable, the older stuff has the largest risk of failure attached to it and that's why the banks get rid of them. Since the banks are less likely to get rid of enforceable debts and if the likes of Cabot are seeing the Debt buying business as a loss, then what chances some of the smaller rats start falling off their logs?

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How's this for a thought

 

CABOT (UK) LTD is sitting on lots of "assets", being the debt portfolio it has bought.

CABOT (EUROPE) LTD is sitting on lots of cash, being the money it has collected.

 

The directors of the "Cabot Group" put Cabot(Europe) Ltd into voluntary liquidation, split the cash as appropriate and retire to Barbados.

 

The Directors also sell Cabot (UK) Ltd to another DCA for a tidy sum. The new owners write to all of the Cabot(UK) customers stating that "you owe us the full balance on your account" because unfortunately Cabot (Europe) didn't hand over any cash before it went into liquidation.

 

Reading other Cabot threads I am surprised by the number of people who are happy dealing with Cabot (Europe) Ltd, when their creditor is Cabot (UK) Ltd. The question needs to be asked - why do Cabot buy the debt with one company and collect money in another company? It certainly isn't for our convenience!

 

A similar situation to that above happened to me with a business joint venture. I had formed a new 50%/50% Ltd Company with a group of companies. Later the MD of the overall group company withdrew all cash from my JV company leaving me to pick up the pieces. I lost a lot and learnt a hard lesson!

 

regards,

 

Muscat

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Citigroup obviously want rid of it so it cannot be a cash cow. It said in Credit Today in July that some DCAs were buying debts just to keep their share of the market but in terms of returns were standing still. And who would buy Cabot at this time? Nobody.The banks all have toxic balance sheets and the last thing they are looking to do is expand in any way. And the investment banks are broke. Private venture capital? I doubt it. Interesting days ahead.

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Music to my ears, i wasnt aware of citi's involvement,i think most DCAs aspire to be one of the cabot's of this world, it would take the wind out of their sails a bit:D:D

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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oh happy days :))))))

 

Anyone going to ask the cabot robot next time they ring "will you still be there next time I call?" What goes around comes around though no doubt the worst of them will find a job at the next DCA sh*thole.

Advice & opinions given by spartathisis are personal, are not endorsed by Consumer Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.:)

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oh happy days :))))))

 

Anyone going to ask the cabot robot next time they ring "will you still be there next time I call?" What goes around comes around though no doubt the worst of them will find a job at the next DCA sh*thole.

 

lol

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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Maynard has made his money already-and lets not forget his DBSG is still coining it.

Lets just say he wont be going to the Jobcentre.

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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How's this for a thought

 

CABOT (UK) LTD is sitting on lots of "assets", being the debt portfolio it has bought.

CABOT (EUROPE) LTD is sitting on lots of cash, being the money it has collected. The directors of the "Cabot Group" put Cabot(Europe) Ltd into voluntary liquidation, split the cash as appropriate and retire to Barbados.

 

The Directors also sell Cabot (UK) Ltd to another DCA for a tidy sum. The new owners write to all of the Cabot(UK) customers stating that "you owe us the full balance on your account" because unfortunately Cabot (Europe) didn't hand over any cash before it went into liquidation.

 

Reading other Cabot threads I am surprised by the number of people who are happy dealing with Cabot (Europe) Ltd, when their creditor is Cabot (UK) Ltd. one question is has a dormant company (Cabot (UK) Ltd.or to be more exact to give them their proper name cabot financial (uk) limited)the right to take someone to court ??? The question needs to be asked - why do Cabot buy the debt with one company and collect money in another company? It certainly isn't for our convenience!

 

A similar situation to that above happened to me with a business joint venture. I had formed a new 50%/50% Ltd Company with a group of companies. Later the MD of the overall group company withdrew all cash from my JV company leaving me to pick up the pieces. I lost a lot and learnt a hard lesson!

 

regards,

 

Muscat

 

AT LEAST THERE WILL BE NO REDUNDANCIES AT CABOT UK:lol:

 

to quote cabot itself

 

"save for statutory officers , cabot uk does not have any employees"

 

now on the subject of cabot financial (europe) ltd by their own admittance , "cabot europe are licensed by Barclays to send Notices of assignment in relation to all such debts assigned to the claimant (which is CABOT UK- who have no employees)"

 

licensed means cabot are allowed to write on "simulated" barclays headed notepaper so you think the letter is coming from barclays when it is in fact coming from cabot (Europe) Ltd

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AND NOBODY WANTS TO BUY 1ST CREDIT EITHER

 

Planned Sale of UK Debt Buyer 1st Credit Put on Hold

(07/25/08) Planned Sale of UK Debt Buyer 1st Credit Put on Hold An auction conducted by Citigroup to find a buyer for United Kingdom-based accounts receivable management firm 1st Credit failed to find a buyer willing to pay what the firm’s current private equity owner was looking for. Earlier in the year, it was reported that Bridgepoint would be seeking at least $650 million for debt buyer and collector 1st Credit (“

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I’ll buy Cabot for a fiver and then dissolve the company. That’s all they are worth and they’re so-called employees considerably less than that.

 

Once I get a few things sorted out, I’ll be firing a few CCA requests off to Cabot. Personally, I can’t wait for the games to begin.

Edited by Cruthin
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I’ll buy Cabot for a fiver and then dissolve the company. That’s all they are worth and they’re so-called employees considerably less than that.

 

The only problem with a plan like that is the fact that you would also take over the 'responsibily' too. The onus would be on you to pay redundancy, albeit statutary minimum @ a week and a half for every year employed.

 

I wonder how many washers that would be?

Washers.jpg

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You could always pay them performance related pay.

 

They behave like monkeys so a few packets of nuts is all it would take. How I really would love to see a DCA going bust and a threat centre closed with massive redundancies about a week before Christmas. I cannot imagine them getting much sympathy or Christmas Cheer here.

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