Shares of embattled lender Amigo Holdings PLC (LSE:AMGO) more than doubled on Friday as it was handed a lifeline - of sorts.
In an update, the company announced an "exclusivity agreement" with shareholder Michael Flemming.
This agreement grants Flemming the right to explore avenues that could secure new loans for the beleaguered firm, a move that might avert an imminent collapse.
He has until September 6 to potentially formulate a last-ditch proposal to save the business.
Despite this glimmer of hope, the Amigo board remains realistic. In a statement released on Friday, they acknowledged the slim chances of a successful outcome from any discussions initiated by this agreement.
In the meantime, it is sticking to its wind-down plans. "The agreement will not stop the company or its subsidiaries progressing with the disposal of assets under its wind-down plan or acting on any approach governed by the Takeover Code," Amigo said.
The shares were changing hands for 0.74p, up 0.42p, or 129%.