Welcome to CattlesShares.co.uk
THE PRESENT POSITION
Former shareholders in Cattles plc who have lodged claims as creditors in the Schemes of Arrangement of Cattles Ltd (as it now is) and Welcome Financial Services Ltd are receiving communications from the Supervisors of the respective Schemes of Arrangement: Zolfo Cooper for Cattles and KPMG for WFSL.
There is a pooling of information between the two Supervisors and, apparently, a common approach.
The starting point is that they appear to be denying claims in both schemes in relation to shares purchased on or after 20 February 2009, the date of the first announcement by the board that anything amiss, when they said that results would be delayed and that they expected PROFITS being substantially lower than current market expectations.
Then there appears to be a division in relation to claims for less than £20,000 and claims for more than £20,000.
In respect of all of the claims over £20,000 both Supervisors have asked for an extension of time to 2 March 2012 and delivered (via KPMG) a further questionnaire. Claimants who are content with the further time being taken need do nothing. If Claimants do not agree then they should tell Zolfo Cooper and KPMG and proceed as a Disputed Claim under the Scheme procedures.
In respect of claims under £20,000 Cattles appear to be accepting them without demur provided that the claim accords with their acceptable basis and in based on cost process as opposed to value or anything else.
WFSL, however, appear to be applying sophisticated formulae to reduce claims and asserting that shareholders who bought shares before 22 September 2005 and did not sell them thereafter would not be likely to recover any damages because they would not be considered to have suffered a loss.
However they recognise that there are risks in litigation and are thus proposing to “discount” such claims by 30%- save that no discount is to be applied to any 2008 Rights Issue shares bought.
Other shareholders will suffer a 15% “discount”.
The “good” news is that WFSL is offering a settlement on a one off basis payment now and offering a sum which as only 10% discounted from their present estimated return over the years of 27p/£.
WFSL will be making periodic distributions over the life of the Scheme- some 7 years is I think the estimate – and payments of less than £100 will be held back until £100 is due to a creditor.
The Early Settlement Lump Sum offer may well be considered by some to be an acceptable way of drawing a line under this unhappy debacle.
No similar option is being offered, as far as I can see, to Cattles Creditors and I would expect that it will be many years, after the end of the WFSL Scheme and any Outward Litigation, that the Cattles scheme will make a distribution which, as far as I can see on the initial estimate of 1p/£, is going to be held back until a line can be drawn under everything.
It is important that Claimants deal with the correspondence which KPMG have sent out.
Many claimants did not respond to the initial requests for additional information as to their acquisitions and disposals etc.
This information is needed to enable the supervisors to properly assess the claims so you are urged to give as much information as you can.
If you cannot give all the information give them what you can and explain why there is incomplete information.
So far as dividends are concerned it appears to be their view that these reduce a claim BUT if that is the case then interest should be added to the amount of claim for an earlier date than 23 April 2009 at 8% to offset.
In respect of the request for details of the incorrect information each shareholder relied upon different information at different times in their investment decisions. The Supervisors do not need you to send then the Annual Reports and half yearly Reports, Rights Issue Prospectus or the many RNS published by Cattles and all you need do is refer to those relevant to your decisions. If you need to refresh your memory reference to Cattles Website under the headings INVESTORS then SHEREHOLDER INFORMATION and STOCK EXCHANGE ANNOUNCEMENTS is a useful point of reference.
I gather that some employees invested after presentations by Directors/employees some of whom left the employment of the companies before the terrible stae of affairs became more clearly known. Details of these presentations, if relevant to you, are the type of thing that the supervisors need to know about.
Some shareholders purchased after their stockbrokers attended presentations by directors and again cases like this should be brought to the attention of the supervisors. Some brokers issued briefing notes I gather and others made specific “recommendations”.
If you had a conversation with, or wrote to a director or the company and held on after receiving reassuring noises then details should be given.
Whatever information you give the more that the Supervisors have the better they should be able to deal with your claim.
Those of you who have registered with me or for whom I have an e mail address will be getting a more specific e mail in the next few days.
If you have not got anything by Friday check your JUNK e mail folder or contact me directly through this site or dredd@cattlesshares.co.uk
Finally my thanks to you for your help support and good wishes which have been sustaining in the months of illness.
It is satisfying that some shareholders have received cheques from the WFSL Scheme so our efforts have not been entirely in vain.
