Consumer lending group Non-Standard Finance PLC (LSE:NSF) slipped 10% to 0.4p after telling investors its balance sheet remains “deeply insolvent” without the successful completion of a scheme arrangement with the Financial Conduct Authority (FCA).
According to a statement, talks with advisors and the FCA to redress liabilities are progressing.
If the scheme of arrangement is not sanctioned by the court, or in the event that the subsequent recapitalisation of the business fails, there would then be a very significant likelihood of group-wide insolvency, most likely administration, it said.
That would result in no return for current shareholders and a significantly reduced return for secured lenders.