Credit card insurer CPP in scramble to replace financing

Credit card insurer CPP Group is in a race against time to replace its debt financing facilities, which expire on 31 March.

News reports say the company is seeking to raise about £40m to avoid falling into administration.

The company issued a statement last week saying it continued to work on a number of financing solutions and “continues to have constructive discussions with the group’s existing lenders”.

But the statement added: “To date, no financing solution has been achieved.

“It is clear to the board that there is significant uncertainty as to what value any such financing solutions may deliver to CPP’s ordinary shareholders, particularly given the current trading price of the ordinary shares.”

The company said it would make further announcements in due course.

News reports over the weekend suggested that the company failed to reach a refinancing deal with its existing lenders, which are The Royal Bank of Scotland, Barclays and Santander.

A spokeswoman for the firm said the company remained in discussions with the lenders, however. She told Insurance Times: “Those discussions have not ended.”