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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/11/cattles-bid-to-avoid-administration.jpg"><img class="alignnone size-full" title="Loss-making sub-prime lender Cattles has unveiled a last-ditch rescue plan as part of a bid to stave off administration" src="http://londonglossy.com/wp-content/uploads/2010/11/min-cattles-bid-to-avoid-administration.jpg" alt="Loss-making sub-prime lender Cattles has unveiled a last-ditch rescue plan as part of a bid to stave off administration"/></a></p>
<p>Loss-making sub-prime lender Cattles has unveiled a last-ditch rescue plan as part of a bid to stave off administration.</p>
<p>The Batley-based loan specialist has put on the table a deal that would see bondholders paid just £49 million of the £750 million they are owed, while shareholders would receive 1p per share.</p>
<p>If the offer is rejected when shareholders and creditors are given the opportunity to vote in the new year, the management will put the company into administration.</p>
<p>The proposal was announced on the same day the company released results showing it made a pre-tax loss of £685.4 million in 2009, compared with a £764.6 million loss the previous year.</p>
<p>Bosses are hopeful that the rescue package will be approved because it already has the backing of some of its biggest creditors.</p>
<p>It would be run by a &#8216;shell&#8217; company, called Bovess, under the same management team, and it would continue to collect its loans, some of which have a lifespan of two years.</p>
<p>It would also allow the company to preserve jobs, at least in the short-term, as it could gradually reduce its 2,800 staff, whereas administrators might make drastic redundancies.</p>
<p>The terms of the offer have been thrashed out following weeks of discussions with bondholders and banks.</p>
<p>There are no plans to carry on lending through its main trading arm, Welcome Finance.</p>
<p>But its doorstep lending and debt collection businesses have now returned to profit and could continue trading for the foreseeable future.</p>
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