Stricken lender to go private in bid to stave off insolvency
Embattled Nottingham sub-prime lender, Morses Club, is set to go private in an effort to ward off insolvency.
The firm, which has been trying for some time to agree a Scheme of Arrangement after it suspended processing claims made against its “unaffordable” loans, says that de-listing will help it access funding that might not be available to it as a public company.
Morses Club says that the costs of maintaining a public listing on AIM are inhibiting its ability to place £5m into a compensation fund that will be used to pay off the claims against it.
The plans will be voted on at a General Meeting in Leeds on February 3, with the last day of trading in shares on February 10 and cancellation of February 13.
Morses Club has endured a torrid year. The firm slipped to a major loss of £21m for the six months to August 27 2022, against a profit of £1.8m in 2021.