Business
Statement re Proposed Scheme of Arrangement
Statement re Proposed Scheme of Arrangement.
About this update from Cpp Group Plc
[{"type":"text","content":"\n \nRNS Number : 2944X CPPGroup Plc 09 January 2014 \n \n\nCPPGROUP PLC\n09 January 2014 \n \nProposed Scheme of Arrangement\n \nCPPGroup Plc (\"CPP\" or the \"Group\") today publishes the following statement in relation to the proposed Scheme of Arrangement (\"Scheme\") to review claims and, where appropriate, pay redress to customers.\n \nA meeting of the Scheme Creditors was held on 07 January 2014 and the voting stage of the process has now been completed. The Scheme has been successfully approved by customers who were sold or renewed a policy since 14 January 2005. Votes were cast by 18% of those eligible to vote and of those, 98% of votes were in favour of the Scheme. The Scheme will now proceed to the High Court for approval. \n \nAs announced on 20 December 2013, the Group has increased its provision for customer redress and associated costs to £65.8 million, principally reflecting a proportionately higher level of votes from the Scheme Creditors for whom CPP is directly responsible. However, due to the uncertainty of how many customers will respond during the claims process, it remains possible that the rate of responses leading to a successful claim under the Scheme may be materially higher or lower than currently anticipated.\n \nAs previously disclosed, the Group's loan facilities contain covenants including an event of default where customer redress response rates leading to a successful claim under the proposed Scheme exceed 25 per cent. Following discussions with its existing lenders, the Group has agreed an amendment to its loan facilities that increases this threshold beyond 25 per cent to 32 per cent.\n \nBrent Escott, Group Chief Executive, said:\n\"A key priority is to achieve the best outcome for customers affected by the historical issues in the UK business and customer approval for the Scheme marks a further step forward in this process. Whilst the Group will continue to face significant risks and uncertainties in the short to medium term, we continue to work closely with our stakeholders to complete the Scheme and provide a stable platform from which the business can look forward.\"\n \n \n\n\n \nFor enquiries contact:\n \nInvestor Relations\nCPPGroup Plc \nBrent Escott, Chief Executive Officer\nCraig Parsons, Chief Financial Officer\nTel: +44...