Amigo Holdings PLC (LON:AMGO) has accepted the court judgement on the scheme of arrangement handed down last week and will not appeal, it said in a statement today.
In his ruling, Justice Wills threw out the scheme and said the creditors who had voted in favour lacked the necessary information or experience to assess the alternatives.
UK financial regulator the FCA had also opposed the scheme on the grounds it placed too much burden for the company's survival on customers rather than shareholders and bondholders.
In a statement, Amigo said: “The Board of Amigo continues to consider all options, which includes insolvency, and whether it might be possible and appropriate, given the cost of a scheme, to promote another scheme of arrangement to avoid insolvency.”
The payment of redress creditors will continue to be stopped until further notice, it said, adding it had also delayed its financial results for the year to end-March 2021.
Gary Jennison, Amigo’s chief executive, said: "Without a scheme, Amigo faces insolvency as it will be unable to satisfy its customer compensation claims as well as meeting the legally binding funding obligations owed to its secured creditors.
"The board is committed to finding the best solution it can for Amigo's customers and other stakeholders and will be working with its stakeholders, including the FCA, to achieve that solution as quickly as it can."
Amigo's original proposal would have seen a pot of between £15-35mln shared out by all the claimants plus a share of profits made by the company over the next four years.
This would have limited payouts to around 10p in the pound.
Shares fell 12% to 7.3p.