Directors funded contribution at loss-making Cattles

Miles Costello and Robert Lindsay & ,}

Cattles indicted the former directors of on purpose on condition that dubious information about the financial management as the stricken doorstep lender reported a larger than approaching 745 million annual pre-tax loss.

The company, whose shares have been dangling for some-more than a year, eventually published the monetary accounts for 2008 yesterday, with an one some-more 190 million in bad debt charges adding to the foresee loss of 553.3 million.

The lender, formed in Batley, West Yorkshire, has been in predicament given Feb last year, when it emerged that it had unsuccessful to set in reserve enough capital to strengthen it opposite non-payment of debts. It brought in Deloitte to lift out a debate examination and dangling and subsequently discharged six directors, together with James Corr, Cattles financial director, and Peter Miller, financial senior manager at Welcome Financial Services, the subsidiary. The four alternative discharged directors were John Blake, Mick Belcher, Ian Cummine and Adrian Cummings.

Margaret Young, who was commissioned last year as senior manager chairman, pronounced yesterday that sure of the former directors had provided

incomplete and dubious report that had helped to facade the loyal state of Welcomes loan book and in sold the scold turn of balance within the book.

She said: Certain management team had supposing a range of presentations, papers and written reassurances to the non-executive directors that all was entirely as it should have been and that there was no reason for concern.

Cattles was forced to stop lending in Apr last year as it attempted to renegotiate the loans with a large associate of banks. It after cumulative a standstill agreement to brace the business.

After the review, Pricewater-houseCoopers was transposed as the companys auditor. It is being investigated by the Accounting and Actuarial Disciplinary Board, but denies wrongdoing.

The Financial Services Authority is expected to action when Cattles 2009 accounts are released. Ms Young warned investors to design some-more waste when they are published soon.