By Elena Vardon
Amigo Holdings shares fell after the company said it expects to become insolvent in the next few months, with its London listing automatically cancelled, if it can’t sell its assets shortly.
At 0702 GMT, shares were down 0.05 pence, or 14%, at 0.30 pence.
The U.K. guarantor-loan provider–which is winding down its business–on Wednesday said its subsidiary Amigo Loans, which is partly keeping it solvent, is required to liquidate once it has returned all net assets to its creditors.
Amigo Holdings has no resources of its own and will then be insolvent, it said in a statement ahead of its annual general meeting. Once a liquidator is appointed, its listing will be automatically cancelled under market rules, it said
The group said it continues to be open to expressions of interest for all or any of its assets but that if a viable alternative solution doesn’t emerge “very soon”, it will need to hold another general meeting to ask for shareholder approval to delist from the London Stock Exchange and enter into a members voluntary liquidation. This would result in no value remaining for shareholders, it said.
Write to Elena Vardon at [email protected]
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