Car finance parent company secures loan

Wed, 15 Jul 2009



The parent company of Welcome Finance has been provided with a breath of fresh air, in the form of a £500 million loan facility. Welcome car finance were until recently a powerful force in the vehicle finance market, but owner Cattles decided to close this arm of their business to conserve liquidity.

Cattles face an uphill struggle, with debts of £2.4 billion and alleged accounting irregularities. The company is now talking to lenders (which include a consortium of banks) after stabilising its financial position. Payments may be suspended as the group attempts a restructure.

At this stage, the Welcome Car Finance car loans arm remains closed, and whilst the invoice financing arm of the company was thought to be safe, it may now be sold as part of the restructure.
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