Amigo Loans says talks over potential deal fell through
The business had hoped to salvage something for shareholder by striking a deal.
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Your support makes all the difference.Amigo Loans said that one of its few remaining lifelines had come to nothing as it terminated talks which it hoped might have provided some payout to shareholders.
The business said that the exclusivity agreement it signed a month ago with investor Craven House Capital and others had been terminated.
The high-interest loan provider suspended its shares from trading when the agreement was signed a month ago. It said trading would resume on Friday after the potential for a deal fell apart.
“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,” said chief executive Danny Malone.
“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.”
The company said that it “has been and continues to be open to any expression of interest from third parties in all or any assets of the business.”
But if it cannot find a “viable alternative” there will be nothing left for shareholders and the business will need to be liquidated, Amigo said.
Amigo offered struggling people very high loans at high interest rates. But it was later found to have mis-sold to many of its customers.
The business agreed to pay them some compensation and avoided a fine by the regulator because it was close to collapse.
After many attempts to raise cash that could keep the business going and also give compensation to customers, Amigo in March said that it would likely liquidate the business.