ONE of York's largest employers has closed the doors on any potential sale of the business after securing £20 million funding to support future development at CPP.

The credit card insurance firm, which employs 550 people at its headquarters in Holgate, had announced in November that it was launching a sale process incase it failed in its plans to secure new equity to fund new agreements with creditors.

The business, which is recovering after being fined £10.5 million by the Financial Conduct Authority in 2012 for mis-selling insurance, and subsequently paying out £72.8 million in compensation, has now reported "significant progress" in stabilising its future after securing £20 million of new equity funding.

Brent Escott, CPP chief executive, said: "Our intention to raise £20 million of new equity, refinance and restructure our balance sheet represents a pivotal step as we strengthen the group and invest in our future.

"There are a number of stages on our journey to rebuild thegGroup and we are realistic about our challenges and those which remain.

"Significant progress has been made in the last year to stabilise and add value to the group and with the support of new and existing shareholders, we are moving forward on our journey to create sustainable long-term value for stakeholders."

The CPP board has restructured the Group's liabilities and re-financed its debts as it looks to transfer from the London Stock Exchange to its smaller counterpart AIM.

The moves are subject to stakeholder approval, with the board urging members to vote in favour of the plans at a meeting on January 13.

CPP claims the proposals are in the best interests of the company and shareholders, and if the group is unable to proceed with the proposals, it is likely the board would conclude that the company and certain other members of the group would need to cease trading.

Duncan McIntyre, non-executive chairman, at CPP, said: "The Proposals that we have set out today are vital to strengthen and improve the financial position of the business.

"They will create a stronger platform from which the company can look forward with renewed confidence. The board strongly recommends that shareholders vote in favour of the resolutions."