(Alliance News) - Non-Standard Finance PLC on Monday said the group's business has been transferred to a newly-incorporated company owned by its secured lenders, while announcing plans to delist in London as a result.
In exchange the Wakefield, West Yorkshire-based consumer lending firm said the secured lenders have released GBP70 million of their secured debt and provided GBP40 million of additional liquidity.
The "alternative transaction" follows the appointment of fixed charge receivers in respect of the shares in NSF Finco Ltd.
Non-Standard Finance said business would continue as usual for the group's customers and employees, after the scheme became effective from part of this new funding being paid into the scheme fund.
"The scheme provides certainty on the extent of the group's liability for historical redress claims, while allowing for the partial payment of those claims," the company said.
Together, the alternative transaction and the scheme will "secure the future of the everyday loans business," Non-Standard Finance said, and allow it to "pursue its growth plans providing an invaluable service for its customers".
Following the alternative transaction, Non-Standard Finance no longer has any interest in the group's business, meaning that there will not be any recovery for its shareholders.
It said it continues to progress an orderly wind-down of the company, including asking the UK Financial Conduct Authority to cancel its listing of Non-Standard Finance shares on the Official List.
This is alongside requesting that the London Stock Exchange cancel the admission to trading of its shares on the Main Market. Delisting is expected to become effective on August 8.
Non-Standard Finance said it will provide an update to shareholders in due course regarding the orderly wind-down and that shareholders do not need to take any action at this time.
"We are delighted that the future of the Everyday Loans business is secure. We can now look to the future with a strong financial platform to grow the business in line with our plans," said Non-Standard Finance Chief Executive Jono Gillespie.
"We are very grateful for the support we have received along the way, particularly from the customers and employees of the Everyday Loans business who have stuck with us during a difficult period."
Shares in Non-Standard Finance were suspended from trading in London on Friday last week.
By Greg Rosenvinge, Alliance News reporter
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