Amigo Shares Plunge As it Says There is ‘No Reason’ For Recent Surge

Amigo Holdings (LON: AMGO) shares plunged Wednesday after the company said it has no idea why its shares have surged recently.

AMGO shares are down more than 31% on Wednesday. However, its stock price has more than doubled over the past week, skyrocketing to a high of over 1p on Tuesday.

However, the company said shareholders will get nothing under the company’s wind-down plan.

“The board continues to implement the fallback solution, which is the orderly wind-down of the business, which is expected to result in no value attributable to shareholders once the wind-down is completed,” Amigo stated.

It added that “for the benefit of creditors, the board continues to be open to any indications of interest from third parties for any part of the business.”

In late March, Amigo explained that the “Fallback Solution requires that the trading subsidiary, Amigo Loans Ltd (“ALL”) stops lending with immediate effect and is placed into an orderly wind-down, with the result that all surplus assets after the wind-down are transferred to the Scheme creditors.”