Fri, 12 Apr 2013 | ADMINISTRATION
Credit card insurer CPP has received a last minute extension to its credit arrangements as it continues its struggle to avoid administration.
The firm's £40 million worth of debt is held by banks including RBS, Santander and Barclays. Its arrangements expired at the end of March but lenders granted a temporary extension to today (12 April). Last minute talks last night resulted in a further extension of a week to the new deadline of 19 April.
Upon announcing the extension, the board said that it remains “focused on reaching an agreed financing solution with a view to ensure the viability of the group in the short and longer term, although there can be no certainty that such a solution will be found”.
The business, which is based in York, has been hit by a number of regulatory investigations into mis-selling. These resulted in a £10.5 million fine, as well as payments of some £14.5 million to customers in compensation. The bad press and worry about the company's legal position also resulted in it losing a number of big contracts.
Administration is one of the most likely futures for the business if it is unable to find an alternative solution before the new deadline expires.
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