‘Tentative interest’ keeps Amigo hoping over rescue deal

Credit provider Amigo Holdings is still holding out hope of a reverse takeover as it continues to wind down its operations.

The Bournemouth-headquartered finance company has ceased lending and discussions over a rescue deal with Craven House Capital failed last month.

Amigo’s chief executive Danny Malone said: “A number of tentative indications of interest have been received, but none of these has as yet resulted in an executable proposal.

“We believe that a reverse takeover is the only possible prospect of delivering any future value for shareholders.”

Amigo’s shares closed on Friday at 0.17p, which valued the company at less than £1m. When it floated in 2018 the company was worth £1.3bn.

Amigo failed because it couldn’t raise enough money to pay out compensation that was due to customers.

Last week it apologised for delays in dealing with claims, which it said was caused by “both the unexpected volume of claims and the complexity of redress calculations”.

It has issued 119,000 final response letters to customers but has 90,000 claims still outstanding.

Malone added: “We are focused on the important task of delivering redress due to those customers with a claim under our Scheme of Arrangement and ensuring the orderly wind down of operations.”