The consideration for the disposal is £10.8m in cash - the expected net asset value of CIF Group as at completion - plus the repayment of inter company loans of £59.6m, on a pound for pound basis, for the net assets and inter company balances as at completion.
The proceeds will be used to repay bank indebtedness of approximately £65.6m in consideration for the release of the bank guarantees previously given by Cattles Invoice Finance Limited and Cattles Invoice Finance (Oxford) Limited.
This forms part of the board's strategy of working closely with Cattles' debt providers to sustain their support for the Cattles group's action to stabilise its financial position, preserve liquidity and reshape significantly the continuing Cattles group.
Cattles is still in constructive discussions with its key financial creditors to obtain a standstill agreement.
Story provided by Business Financial Newswire