Welcome are now officially dead and buried

[RALALU]

Hi All,

 

Just a little xmas cheer for all you welcome sufferers, as of today Welcome are now officially being run down to close, debts will remain as they continue to collect over the next 2 to 3 years but there should now be some serious room for negotation and offers, see below announcement:

 

Cattles plc

16 December 2009

 

 

 

 

Cattles plc

 

 

 

 

General Meeting Update

 

 

 

 

 

 

 

At the General Meeting of Cattles plc (the "Company"), called today to consider the Company's serious loss of capital and the actions taken by the Board, the Executive Chairman of Cattles plc, Margaret Young, will make the following statement:

 

 

 

 

"The Board of Cattles plc announced on 25 November 2009 that it had agreed a Standstill and Equalisation Agreement (SEA) with its key financial creditors, and that this should improve the likelihood of Cattles achieving its restructuring objectives.

 

 

 

 

Since the SEA announcement, we have met with representatives of our financial creditors to update them on our recent financial performance and to review with them a range of strategic options. These meetings followed extensive strategic, operational and financial analysis of our Group's businesses.

 

 

 

 

Based on this analysis and against the background of the significant losses incurred to date by Welcome Finance ("Welcome"), the Group's principal business, we were unable to recommend a business plan to our financial creditors which would allow Welcome to lend to existing or new customers.

 

 

 

 

The Board has therefore recommended a plan which will focus on collecting out Welcome's customer loans. It is envisaged that the collection of the Welcome loan book could take two to three years and, during this period, the Group's cost base will contract to reflect the reducing size of the book.

 

 

 

 

The Group's smaller businesses, Shopacheck and The Lewis Group, will continue to trade as normal. The Board is still exploring the scope to develop these businesses further.

 

 

 

 

The shares in Cattles plc were suspended on 23 April. The Board requested a suspension when it became clear that we would not be in a position to fulfil our reporting obligations as a quoted company. At the time of the share suspension, the revelation of the Group's serious problems had already reduced the share price to a nominal level.

 

 

 

 

The shares will remain suspended until further notice while the Board continues to work towards agreeing a restructuring with the Group's financial creditors.

 

 

 

 

The Board indicated to shareholders at the AGM on 29 July 2009 that the size of the under-impairment in 2008 and earlier years was such that it would be very difficult to recover value for shareholders. The prospects for any such recovery have further diminished in the absence of a viable plan to rebuild the Welcome business.

 

 

 

 

Shareholders should therefore be aware that, in view of this and of the now substantial negative value of shareholders funds, the shares are likely to have little or no value."

 

 

 

 

 

 

 

 

 

 

For further information:

 

Margaret Young, Executive Chairman, Cattles plc 020 7269 7252

 

Geoffrey Pelham-Lane / Paul Marriott, Financial Dynamics

[PGH7447]

aw how sad never mind, pity lewis and clueless didnt go the same way

[PGH7447]

and some more misery

 

FT.com / Companies / Financial Services - Shareholders ponder Cattles legal action

 

Shareholders ponder Cattles legal action

[PGH7447]

News  /  Breaking News: Cattles unable to recommend plan for Welcome Finance THEBUSINESSDESK.COM

 

CATTLES said today that it is unable to recommend a business plan to its financial creditors that would allow Welcome Finance to lend to existing or new customers.

Margaret Young, chairman of the Batley-based sub-prime lender, said that the decision was made on analysis of the group's businesses and against the background of significant losses incurred to date by Welcome.

She said the board was therefore recommending a plan, which will focus on collecting out Welcome's customer loans.

[RALALU]

The shares are now worthless.

 

All collections will be moved to head office and all other offices closed, as the book is run down redundancies will be made month on month. Not a happy thought for the staff still employed there and who, if sensible, will now be looking for further employment asap.

[Dibbothe3rd]

serves them right for trying to rip people off, obviously i'm sorry for the well meaning employees who are now going to lose their jobs.

 

Looks like I shall be making them an offer to settle my HP early heh heh. about 10p in the pound sounds about right!!

[RALALU]

Thats harsh Dibbo.......... i mean, i was thinking more in the line of 25p in the pound .

 

Seriously though, last week prior to the announcement i got them to agree to a 1/3rd reduction of my oustanding balance if I paid a lump sum as full and final payment. (luckily never agreed to this in writing)

 

I can't see the staff fighting too hard now against my new proposal, seeing as any extra money they can bring in, in the short term, will enable them to grab a few more bonuses between now and their impending redundancy.

[mrjoolz]

Hi,

 

What would be an acceptable offer. What should I offer on 4K.

 

Is 10p to the pound a bit of a joke, or will they consider it ?

 

any advice appreciated

 

Me

[Dibbothe3rd]

just a thought, seeing as now the company are no longer able to honour their obligations under which our agreements were taken out under and offer a good service...are they in breach? (cant remember the exact wording on the paperwork I have, but will check it out later)

[Dibbothe3rd]

section 3) in the key notes on the back of my agreement state:

 

"If the contract is not fulfilled, perhaps because the supplier has gone out of business, you may still be able to sue the creditor"

 

might be of some use.

[Consumer dude]

Does this news affect only welcome or are other cattles affected, like cl finance..

[RALALU]

Dibbo - no i wouldn't have thought that they were, the only difference really is the closure of your local branch ( if it is indeed still open!)

 

Mrjoolz - i wouldnt be making any offers yet until the new year as todays news would have been taken hard by the staff and your unlikely to get a sympathetic ear. Personally I'll be waiting till mid jan and then will make the offer that I have stated previously - 25% of my outstanding balance. Its important that if you do make them an offer that you state its full and final and that you stipulate that your credit file will be marked as paid in full, also ensure that any agreement is confirmed via letter.

[RALALU]

dibbo - at present they haven't gone out of business - the business is remaining open to collect the outstanding loan book so the clause would not apply

[mrjoolz]

Thanks RALALU, I will wait until the new year then. Can I offer less than 25% ? Also I still havent had my CCA back yet after 15 days, and also my SAR when arrived had half information missing, including statement and contained false agreement copy.

[RALALU]

Mrjoolz - you can offer whatever you like but they do not need to accept it. Obviously if you feel that you have issues with your CCA request then this may give you more bargaining power. As i said i'd wait a month yet, lets see if there's any further announcements and if they actually propose any settelements first as the onus is now on them to get as much back in as short a timescale as possible.

[Dibbothe3rd]

was worth a shot.

 

so really all they will be doing is collecting repayments and paying out over reclaimed PPI and other issues heh heh. Makes you wonder if they will actually have any cash to repay their creditors!

 

I wonder why they decided to continue to collect, but not sell the loans on? I bet they know something that we all know and are gambling that some people don't find out heh heh

[PGH7447]

No they onus is on them to prove a debt exists not try and [problem] people in the rush to shut up shop

[RALALU]

at present they are still losing over a million pounds a day (scary figures eh), in closing all the branches and making several hundred redundancies they will obviously reduce costs significantly but only enough to pay back SOME of them money that they borrowed - the latest figures being banding about is that they owe over 2billion!!

[RALALU]

PGH7447 - obviously the debt has to be proved legal and compliant first before it can be collected, if it proves that it is then my answer stands, if not then its account in dispute time

[natalie]

Hi,

 

What would be an acceptable offer. What should I offer on 4K.

 

Is 10p to the pound a bit of a joke, or will they consider it ?

 

any advice appreciated

 

Me

 

I'd go even lower, 5p in the £. They might say no, but it leaves more room for negotiation.

 

They are the ones going bust not you. I daresay you are more than happy to continue paying them £1 a week. They need your money, no tht eother way round!

 

Dont you just love it when the shoe is on the other foot

[mrjoolz]

well this is a really good Xmas pressie. Shall I tell the missus or keep the money and pretend still paying loan.... hehehe :o)

[beyondhope]

Im sat here somewhat resembling

[Dibbothe3rd]

I bet Post is having a few stiff drinks at the moment!

[sherry_d]

I am thinking more like 0pennies per £1. I have paid more than the money they loaned me plus a good interest rate to them already

 

Am i the only letter who have received the letter already for a discount (not that I intent paying it)

 

I love the part that say "our dedicated staff will be able to take payment as quickly and easily as possible" I bet they do and are real experts at this esp now with this news

 

 

Edited December 16, 2009 by sherry_d

[RALALU]

Hi Sherry - can I ask is your loan secured or unsecured??