13 May 2010

Cattles plc - Court of Appeal judgment

On 12 May 2010, the Court of Appeal heard the appeal of Party A and the subsequent cross-appeal of the Royal Bank of Scotland Plc of the decision of the High Court on the application of Cattles plc (the "Company") to seek a determination in relation to whether the terms contained within certain cross-guarantee documentation operate to subordinate the Company's claims against its subsidiaries, including Welcome Financial Services Limited, to the claims of certain bank creditors. This appeal and a cross-appeal was brought as part of consensual discussions between all parties.

Earlier today, the Court of Appeal unanimously handed down a decision that upheld the decision of the High Court which is explained in the Company's announcement dated 14 December 2009.  The cross-appeal in relation to the Cherry v Boultbee issues were stayed.

After judgment was handed down earlier today, Party A sought permission from the Court of Appeal to appeal this decision to the Supreme Court.  The Court of Appeal did not give such permission and Party A now has 28 days to appeal to the Supreme Court for permission to appeal the Court of Appeal's decision. 

ENDS

For further information:

Margaret Young, Chairman, Cattles plc 020 7269 7252

Geoffrey Pelham-Lane/Paul Marriott, Financial Dynamics