Shareholders win £16m Cattles compensation

Shareholders who refused an offer of 1p a share for their stakes in sub-prime lender Cattles were yesterday celebrating a £16 million settlement.

The group of 60 claimants has been locked in a legal battle with Welcome Financial Services, a subsidiary of Cattles, since its shares were suspended in 2009.

The largest individual payout is thought to be more than £3m, while the smallest is around £6,000. Barry Dearing, who led the group, said: “This is a little justice for the little people. One elderly shareholder told me his settlement will pay for his knee operation.”

Cattles, which went private last year in a bid to avoid administration, agreed at the “11th hour” to pay an average of 27p a share to 60 claimants who elected to be treated as creditors rather than shareholders. The settlement is thought to be the first time a subsidiary has paid compensation to shareholders in its collapsed parent company.