THE struggling owner of the Welcome Finance consumer loans firm said today it had been given some breathing space by its lenders.

Cattles said a consortium of banks had agreed to extend a £500m facility, due for re-financing this week, until the end of the year.

The Batley-based firm is labouring under debts of £2.4bn and has been hit by ‘accounting irregularities’ which blew a £700m hole in its balance sheet.

Cattles added it was in ‘discussions around a wider restructuring of the group’.

Cattles said it was still in discussions with all its creditors over a formal ‘standstill agreement’ which will see payments to its bondholders suspended while it resolves its future.

The firm sacked six senior bosses two weeks ago over a ‘breakdown in controls’ – including extending terms on under-performing loans, to avoid making a loss provision in the accounts.