TROUBLED credit card insurer CPP secured a last minute extension to its credit arrangements last night as it fights to avoid administration, although the board said “there can be no certainty” that a long-term solution will be found.
The York-based company has been battered by a series of regulatory probes into mis-selling which saw it lose a number of major contracts, pay a £10.5m fine, and return £14.5m to customers in compensation.
CPP’s existing debt arrangements expired on 31 March after it failed to renegotiate around £40m of debt held by banks including Barclays, Royal Bank of Scotland and Santander.
Its lenders granted a temporary extension until today in the hope that the company could be saved. Last night this was extended by a further seven days to a new deadline of 19 April.
Hamish Ogston, the company’s founder and majority shareholder, has offered to take the company private for 1p a share.
Ogston floated the company on the London Stock Exchange in February 2010 at 235p.
The board said it “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.”