Credit Card Group CPP Seeks Last-Ditch Rescue

5corpio started a blog post Credit Card Group CPP Seeks Last-Ditch Rescue
11 April 2013, 18:01

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Credit Card Group CPP Seeks Last-Ditch Rescue

Credit Card Group CPP Seeks Last-Ditch Rescue

The troubled credit card protection provider CPP is in talks today about a last-ditch financing extension that would avert the short-term threat of administration. I understand that one of the options on the table between CPP and its lenders is a six-month extension to its borrowing arrangements that would buy the company sufficient time to negotiate a longer-term deal. A six-month agreement is understood to have been the likeliest outcome from the talks until a couple of days ago, although insiders today cautioned that the situation was "fluid" and that several options remain on the table. Sky News also understands that CPP's board has drafted in Greenhill, the investment bank, and KPMG, the accounting firm, to advise it on its options following the collapse in its share price triggered by its involvement in a major mis-selling scandal. Hamish Ogston, CPP's founder and the owner of roughly 60% of its shares, has approached the board about taking the company private.....Read more here

Previous Headlines from AAD Blog:

Insurance company CPP hit by record FSA fine - allaboutFORUMS

The next PPI? - allaboutFORUMS

Crisis engulfs credit card insurer CPP as management suspend - allaboutFORUMS
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4 comments
- #2
  
  5corpio commented
  
  18 April 2013, 15:18
  
  Editing a comment
  
  Insurance company CPP hit by record FSA fine - allaboutFORUMS
- #3
  
  5corpio commented
  
  19 April 2013, 09:06
  
  Editing a comment
  
  A credit card insurer, fined £10.5m for mis-selling policies, has agreed to sell its US arm to help compensate customers and stave off creditors. CPP, based in York, has announced the proposed sale of its American business to AMT Warranty for £26.1m. The company said it had also agreed an extension to the date by which it must repay around £40m to lenders. Provision for compensation and associated costs have been raised from £33.4m to £51.7m, the firm said. Cash from the sale will be split between repaying lenders and funding customer claims, though it said it anticipated just one in four claims would succeed.
  
  'Best interests'
  
  CPP, which sells products such as wallet and card protection through banks and building societies, said it had now been given until 30 September to pay back investors. Last year, it was fined by the Financial Services Authority and ordered to compensate customers over the mis-selling scandal between 2005 and 2011, during which it sold 4.4 million policies and renewed almost 19 million.......Read more here
- #4
  
  5corpio commented
  
  29 June 2013, 16:47
  
  Editing a comment
  
  CPP Group founder Hamish Ogston has pulled out of takeover talks for the troubled credit card protection firm. CPP, fined £10.5m last year for mis-selling insurance products, also announced that Mr Ogston had resigned from the board. York-based CPP, which employs about 900 people, said it was still in talks with its lenders and other possible investors about long-term funding. As well as the fine, CPP must pay millions of pounds in compensation. In April, the company raised about £26m from the sale of its US business, but needs to raise additional funds before its existing bank facilities expire on 30 September....Read more here
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Credit Card Group CPP Seeks Last-Ditch Rescue

Credit Card Group CPP Seeks Last-Ditch Rescue