Subprime lender Amigo Holdings said today it continues to be open for a reverse takeover as the only possible prospect of delivering future value, after having received a number of unsuccessful tentative indications of interest.
Amigo, which provides credit to borrowers excluded from mainstream banks, is in an "orderly solvent wind-down" after the cost of compensating customers for loans mis-sold in the past pushed it to the brink of collapse.
The company said net assets have reduced by 84% to £5.8m as of September 30, 2023.
"We believe that a reverse takeover is the only possible prospect of delivering any future value for shareholders," CEO Danny Malone said in a statement.
The company said it has agreed the sale of its RewardRate portfolio and has started the sale process of its Amigo Loans' charge-off portfolio.
"The legacy Amigo live portfolio is expected to be sold in early 2024," the company said.
Malone will step down as CEO on December 31 and will be succeeded by Kerry Penfold.
Amigo has hired Grant Thornton to support with the dissolution of the group during 2024.
