Directors at struggling credit provider Amigo have said they are “leaving no stone unturned” as they battle to raise \u00a345m and save the company.<\/p>\n
The Bournemouth-based lender said it has had “indicative interest” for \u00a310m-\u00a315m of equity and \u00a310m of exchangeable notes and conversations are continuing.<\/p>\n
Amigo is in a Scheme of Arrangement that requires a 19:1 capital raise to be completed by May 26th. A minimum of \u00a315m would then be paid to the scheme fund for creditor redress.<\/p>\n
But if the board expects the capital raise to be unsuccessful, it is “legally bound” to begin an orderly wind-down of the business.<\/p>\n
Amigo’s chief executive Danny Malone said: “We are now faced with the challenge of securing equity funding, against a backdrop of weak equity market conditions, to fulfil the Scheme condition and provide enough working capital to support ongoing operations.<\/p>\n
“Conversations with potential investors continue and we will do everything we can to deliver the best outcome possible for all our stakeholders.”<\/p>\n
Malone stressed the importance of the credit provider continuing to operate and the risks of a rise in unregulated lending.<\/p>\n
“With so many companies in our sector having been forced out of business, there is a significant need for mid-cost lenders to support the millions of people underserved by mainstream finance,” he said.<\/p>\n
“This has never been more relevant, with the cost-of-living crisis deepening, and the ever-present, insidious threat of unregulated, illegal lending.”<\/p>\n