LONDON (MarketWatch) — U.K. subprime lender Cattles said Monday that it won’t pay a coupon on 400 million pounds (2 million) of bonds that had been due on July 5. The group said it is still in constructive discussions with its finance providers and will issue a further update shortly. The group has been seeking a standstill agreement with lenders. It also recently fired six senior executives following an internal investigation into a “breakdown in internal controls” which led to its impairment policies being applied incorrectly.