Amigo Holdings PLC (AIM: AMGO), 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 [email protected] 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.
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