- Amigo stopped trading in March 2023 in wake of regulatory issues
Amigo Loans has less than two months to secure a viable future or it will fall into insolvency, the collapsed subprime lender said on Monday.
The group revealed a shake-up of its senior leadership team as it warned it must raise additional funding as ‘current resources will only be sufficient until early July 2025’.
Amigo stopped trading in March 2023 and began a winddown process in the wake of regulatory issues that forced it to cease offering new loans three years earlier.
The Financial Conduct Authority found Amigo had failed to conduct proper affordability checks and dished out high-interest loans to borrowers with shaky credit histories.
Amigo secured High Court approval for a redress scheme and was given the green light from the FCA to restart lending in October 2022, but was forced to start an orderly wind down after failing to raise the necessary cash to stay afloat.
Its board has been looking to secure a future for Amigo via a reverse takeover situation, but has yet to find a suitable partner.
Amigo Loans ceased trading in March 2023
Amigo said on Monday: ‘The company has a very limited runway and, based on its budget and further measures to reduce costs, current resources will only be sufficient until early July 2025 prior to which the company will need to raise additional funding in order continue its RTO search, failing which it will need to declare insolvency.’
It also revealed that Kerry Penfold would immediately step down from her role as group chief executive and director, but continue in her role as CEO of subsidiaries until the end of the month.
Chief restructuring officer Nicholas Beal will join the group’s board as an executive director with immediate effect and will take on Penfold’s corporate responsibilities alongside his existing role.
Michael Bartholomeusz will also immediately step down from his role as a non-executive director and chair of the audit and risk committees, but continue in his role as a non-executive director of subsidiaries.
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