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TwentyOneEleven

Lender Picture Financial Faces Sale For 1p As Credit Crisis Deepens

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http://business.timesonline.co.uk/tol/busi...icle3607772.ece

From The Times

March 24, 2008

Lender Picture Financial faces sale for 1p as credit crisis deepens

Miles Costello

A former Apax-owned Welsh consumer finance group with a £1.2 billion loans book is poised to be sold within the next seven to ten days to an unnamed rival private equity firm for as little as 1p.

Picture Financial, owned for the past year by management, was forced to put itself up for sale last year after Merrill Lynch and Deutsche Bank refused to provide further financing in the wake of the credit crunch.

An archetypal victim of the seizure in credit markets, Picture faced a funding squeeze from its lending banks as the threat of a recession made the loans on its own books appear riskier. It specialises in providing unsecured credit, which tends to be used to buy cars and pay off other loans.

Picture Financial suspended further lending last week while the sale went into its final stages. It declined to comment on the sale process yesterday. Apax, the private equity group and former owner of Picture, did not return calls seeking comment on whether it faced any residual exposure to Picture.

It is understood that Kinmont, a boutique advisory firm, has been working on the sale. Talks have been held with WL Ross, the distressed debt specialist, and Cerberus, the private equity group, sources said.

While relatively small as a consumer lender, Picture Financial operates a well-known brand. As well as mounting a television advertising campaign, the firm was personally endorsed by Peter Hain, the former Work and Pensions Secretary.

Mr Hain was forced to resign after it emerged that he had failed to disclose £103,000 in political donations made while he was fighting to become the Labour Party's deputy leader.

Picture, whose chief executive Neville Allport is an admirer of Mr Hain, made a £5,000 political donation to the former minister to back his campaign. Its loan was disclosed to the appropriate parliamentary authorities.

High street lenders have become more concerned about their exposure to bad debts as the credit crunch takes its toll on borrowers.

The Times revealed on Saturday that the number of banks seeking to secure credit card debts, personal loans and other unsecured debts against their customers' property surged by 580percent between 2000 and 2006.

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AH penny shares!

interesting products if you bought at 1p.

not so nice otherwise.

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Picture sums up for me how morally bankrupt Labour are...the old time socialists would be aghast at the thought of taking money from re-branded scummy bottom feeding moneylenders...they prey on the very people Labour claim to represent.

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Of course, if a lender cant survive in sub prime and the bad debt market, then its a shame for all the BMV people out there too, dealing with the same financially illiterate people.

well, not a shame really.

More, a joy really.

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:lol::lol::lol:

I'm sure I saw a cartoon-style spoof of one of these ads on E4 once, but have never been able to find it online anywhere.

EDIT: This wasn't it, but another one they've done, and quite funny (especially the old dear in her undies!) ...

Love the sharks at the end too! Edited by TwentyOneEleven

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Why don't think just consolidate their debts into one easy loan?

It will only take one phonecall and there are no forms to fill in...

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I read it as the entire business might be sold for 1p, not each of its shares.

The owners should take comfort from the fact the metal in the coin is probably worth more than it's face value. Everyone's a winner.

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http://business.timesonline.co.uk/tol/busi...icle3607772.ece

From The Times

March 24, 2008

Lender Picture Financial faces sale for 1p as credit crisis deepens

Picture, whose chief executive Neville Allport is an admirer of Mr Hain, made a £5,000 political donation to the former minister to back his campaign. Its loan was disclosed to the appropriate parliamentary authorities.

From Picture own website:-

Our financial support is strong and our vision is clear – we’re aiming to be the number one in our market. We're backed by venture capital specialists, Apax Partners, with additional funding from Merrill Lynch and Deutsche Bank, two of the world's largest investment banks. Under the leadership of our chief executive, Neville Allport (who earned an OBE for his contribution to financial services), we filled a niche in the consolidated credit market. Ours is a quality product delivered by quality people

Draw you own conclusions

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Why don't think just consolidate their debts into one easy loan?

It will only take one phonecall and there are no forms to fill in...

It is crushingly funny - but at the same time depressing as hell - these guys really were/are? the absolute symbol of Utter Madness & LYING/FRAUD - they sum up this past decade stunningly....

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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