Last checked at 9 Jun 2023 07:00
9 June 2023
Amigo Holdings PLC
Market Update
Amigo Holdings PLC ("Amigo" or "the Company"), a provider of mid-cost credit in the UK, announced that it had started an orderly solvent wind-down of the business in March 2023, following an extensive but unsuccessful capital raise process. The Company has been approached by Michael Fleming, a financier and shareholder, to request an exclusivity agreement in relation to the business (the "Agreement") which Amigo has agreed to. This is to allow Mr. Fleming, to explore finding and completing a debt investment in the Company or its subsidiaries. The period of exclusivity expires on 6 September 2023. Parties interested in providing debt investment should contact investors@amigo.me in the first instance.
The Agreement will not stop the Company or its subsidiaries progressing with the disposal of assets under its wind-down plan or acting on any approach governed by the Takeover Code. Shareholders should note that there remain significant impediments to any new capital being made available to the business. In addition, establishing a new business and potentially creating value for shareholders in the longer term, has significant execution risks and will require regulatory approval. The Board recognises the very low likelihood of a successful conclusion to any discussions arising because of this Agreement but is pursuing the Agreement in line with its duties under the Companies Act to consider the interests of all stakeholders, including creditors, shareholders and employees. Under the Fallback Solution of Amigo's Scheme of Arrangement (the orderly wind down of the Amigo Loans Ltd business), there is no expected residual value for shareholders.
ENDS
Enquiries
Company |
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Amigo Holdings PLC | investors@amigo.me |
Kate Patrick | Investor Relations Director |
Roger Bennett | Company Secretary |
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Media enquiries | Amigoloans@lansons.com |
Ed Hooper | 07783 387713 |
About Amigo Loans
Amigo is a public limited company registered in England and Wales with registered number 10024479. The Amigo Shares are listed on the Official List of the London Stock Exchange. On 23 March 2023 Amigo announced that it has ceased offering new loans, with immediate effect, and would start the orderly solvent wind-down of the business. Amigo provided guarantor loans in the UK from 2005 to 2020 and unsecured loans under the RewardRate brand from October 2022, offering access to mid‐cost credit to those who are unable to borrow from traditional lenders due to their credit histories. Amigo's back book of loans is in the process of being run off with all net proceeds due to creditors under a Court approved Scheme of Arrangement. Amigo Loans Ltd and Amigo Management Services Ltd are authorised and regulated in the UK by the Financial Conduct Authority.
Additional Information
This announcement is not intended to, and does not, constitute or form part of any offer, invitation, or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell, or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this announcement or otherwise.