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.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020