At a general meeting convened yesterday to consider its serious loss of capital, troubled lender Cattles Plc met with further shareholder action.
At the meeting, a resolution was proposed by a shareholder, and passed on a show of hands by shareholders representing around 1% of the company’s issued share capital. This was a resolution for the company to request the financial creditors to sanction an amount of up to £500,000 to fund a petition by shareholders for the winding up of the company.
Cattles’ directors do not believe that a winding up would be in the interests of any of the company’s stakeholders. They say it would be inconsistent with the directors’ duties to preserve value for creditors and contrary to the objective of achieving a consensual restructuring. Furthermore, having taken advice, it is the directors’ view that such a petition would be highly unlikely to succeed.
However, as required by the shareholders present and voting at the general meeting, the directors will convey this proposal to the financial creditors.
Margaret Young, executive chairman, said: “The board of Cattles and I very much regret that today’s update confirms the significant loss suffered by our shareholders. However