Sub-prime lender Cattles suspends group FD

Sub-prime lender Cattles has suspended another three executives, including its group finance director, James Corr.

The suspensions come during a review of the company's 'impairment provisions' – the extent of its bad debts – by internal auditor Deloitte.

In the past few months Cattles has made a number of profit warnings and suspended lending to new customers in its Welcome Finance division to preserve liquidity.

The company today announced the suspension of group finance director James Corr, chief operating officer Ian Cummine and compliance and risk director Adrian Cummings.

The suspensions come a week after Cattle suspended three other executives, including divisional finance director, Peter Miller.

Only last month, Cattles said that James Corr, who was due to retire at the end of February, would remain finance director until the review was completed.

Cattles today said that it is in breach of covenants under its borrowing arrangements and will therefore be seeking appropriate waivers from relevant debt providers.

Further reading:

Cattles' FD stays on until Deloitte finishes review