CPP agrees further extension to credit facility

Credit card insurer CPP has agreed a further one-week extension to its revolving credit facility in order to solve its financing problems.

The group has been in "constructive discussions" with its existing lenders and others to hash out various financing and strategic options.

The problems arose when the company was slapped with a record £10.5m fine for mis-selling insurance products.

"The board remains focused on reaching an agreed financing solution with a view to ensuring the viability of the group in the short and longer term, although there can be no certainty that such a solution will be found," it warned.

The share price fell 7.47% to 4.15p by 15:00 on Friday.

NR