Legal DealFolio - Cattles plc debt restructuring

Allen & Overy has advised the lenders' coordinating committee on the restructuring of GBP1.6 billion of debt lent to financial services group Cattles plc. The final court sanction issued this week has saved Cattles from insolvency following two years of discussions between the company, shareholders and creditors. Negotiations began in 2009 after apparent accounting errors threatened to push Cattles into insolvency. The extremely complex restructuring involved a number of unique features including a successful defence by the bank group in court of their right to treat their debt as structurally senior and a ground-breaking agreement with the Financial Services Compensation Scheme to deal with Cattles' liabilities in respect of payment protection insurance policies. Banking partner Trevor Borthwick said: "The sheer complexity of this restructuring sets a new benchmark. It is the first time that an agreement of this kind has been made with the Financial Services Compensation Scheme and the whole restructuring may lead to more financiers accepting that litigation after the fact can never adequately replace good due diligence." The A&O team was led by banking partners Trevor Borthwick, Michael Castle and Gordon Stewart, and litigation partner Andrew Denny.

Deal Date:	04-03-2011	Practice Area:	Restructuring and Insolvency
Deal Title:	Cattles plc debt restructuring	Industry:	General Retailers
Description:	Allen & Overy has advised the lenders' coordinating committee on the restructuring of GBP1.6 billion of debt lent to financial services group Cattles plc. The final court sanction issued this week has saved Cattles from insolvency following two years of discussions between the company, shareholders and creditors. Negotiations began in 2009 after apparent accounting errors threatened to push Cattles into insolvency. The extremely complex restructuring involved a number of unique features including a successful defence by the bank group in court of their right to treat their debt as structurally senior and a ground-breaking agreement with the Financial Services Compensation Scheme to deal with Cattles' liabilities in respect of payment protection insurance policies. Banking partner Trevor Borthwick said: "The sheer complexity of this restructuring sets a new benchmark. It is the first time that an agreement of this kind has been made with the Financial Services Compensation Scheme and the whole restructuring may lead to more financiers accepting that litigation after the fact can never adequately replace good due diligence." The A&O team was led by banking partners Trevor Borthwick, Michael Castle and Gordon Stewart, and litigation partner Andrew Denny.
Financial Center:	London	Value:	0.00-100.00
Advised Party:	Creditors	Law Firm	Allen & Overy
	United Kingdom		United Kingdom
Classification:	Debt Restructuring	Lawyer	Trevor Borthwick

Practice Areas -

Restructuring and Insolvency Law Firms and Lawyers

Practice Areas - Restructuring and Insolvency Law Firms and Lawyers