Amigo Holdings PLC (LSE:AMGO), the mid-cost credit provider, said it started an orderly solvent wind-down of its business in March.
The decision to do so followed an “extensive but unsuccessful capital raise process,” the company said in a statement, while there remain “significant impediments” to new capital being made available.
Michael Fleming, a financer and shareholder, has been granted exclusivity by Amigo to explore and complete a debt investment in the company or its subsidiaries, with the exclusive period ending on 6 September 2023.
Amigo will not be stopped by the agreement from progressing with the disposal of assets under its wind-down plan or acting on any approach governed by the takeover code, it said.
“The board recognises the very low likelihood of a successful conclusion to any discussions arising because of this agreement,” Amigo said.
Establishing a new business that can potentially create long-term value for shareholders has significant risks and will require regulatory approval, it added.