Rescue deal for struggling loan firm collapses

A deal which could have seen a struggling finance company rescued from insolvency has collapsed.

Loan firm Amigo Holdings is currently going through the process of being wound down after it ran out of funds.

There were hopes that a  deal with Craven House Capital could have seen the Bournemouth loan company rescued from the brink of collapse.

But Amigo says the talks have been terminated with immediate effect at the request of the various individuals.

As a result all work on the proposed transaction which was announced in a market update in October 2023 has ceased.

Danny Malone, chief executive  of Amigo, said: “This is disappointing news as the transaction, in the form of a reverse takeover of Amigo, offered a solution that could have provided a future for shareholders, offering some small value that wouldn’t be available otherwise.

“ As we continue the orderly wind-down of our lending business, we remain open to assessing other viable options that could be beneficial for our shareholders, our people and wider stakeholders.”

At the request of the Company, the FCA suspended the Company’s listing on the Premium segment of the Official List and trading on the Main Market of the London Stock Exchange last month.

The temporary suspension was requested because of the lack of information about the proposed transaction, which could have prevented the smooth operation of the market in the shares of the Company.

The company will now request the FCA to lift the temporary suspension of its listing for its ordinary shares of 0.25p each.

A statement said: “Since the Group started the orderly wind down of the lending business, the company has been and continues to be open to any expression of interest from third parties in all or any assets of the business.

“However, as noted previously, should a viable alternative solution not emerge, there will be no value remaining in the  company for shareholders and the company will need, in the near future to convene a separate General Meeting, in which shareholder approval will be sought to delist the company from the London Stock Exchange and to enter the company into a members voluntary liquidation.

“The scheme of arrangement and the wind down of Amigo’s historic lending business continue to their existing timetable.”