CPPGroup in talks with lenders to refinance
CPPGroup said on Wednesday it has proposed the disposal of its North American business to AMT Warranty Corp. following talks with lenders to turnaround its financial struggles.
CPPGroup said on Wednesday it has proposed the disposal of its North American business to AMT Warranty Corp. following talks with lenders to turnaround its financial struggles.
The British-based insurance company is in discussions with existing lenders, Barclays Bank, the Royal Bank of Scotland and Santander concerning the financing requirements of the group.
Founder and Non-Executive Director Hamish Macgregor Ogston has indicated that he would be willing to participate with the lenders in refinancing the company, subject to pre-conditions and limitations.
Conditions include the disposal, which must result in net proceeds to the group of not less than £20m.
New credit arrangements for the group with a three-year term would be agreed between the group, Ogston and the lenders under a deal.
The sale of the North American business would require shareholder approval.
Shares plunged 26.71% to 5.35p at 09:19 Wednesday.
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