The Amigo Holdings PLC (LON: AMGO) share price surged 57.1% after releasing the statement to be made at its annual general meeting (AGM) scheduled for today. The company noted that it is was continuing the orderly wind-down of its business as as announced a few months back.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Still, the mid-cost credit provider remains open to an expression of interest in any of its assets from third parties that could save the company or its assets from the eventual liquidation envisioned by the scheme of arrangement agreed upon in May 2022.
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The orderly wind-down of its business includes maximising payments to redress creditors and continuing to provide its customers with the best service possible while supporting its staff. Amigo Holdings Plc remains solvent since it is currently supported by its subsidiary Amigo Loans Ltd, which is returning assets to its creditors.
Amigo Loans Ltd is expected to liquidate once it has returned all net assets to its creditors. Once the subsidiary has been liquidated, Amigo Holdings Plc will have no assets of its own and, as such, will become insolvent, ending the company’s operations.
The listing of Amigo Holdings Plc on the London Stock Exchange (LSE) will be automatically cancelled once a liquidator for the company is appointed. Alternatively, the company is set to call a separate general meeting to ask shareholders for permission to delist the company from the LSE.
The decision to call a general meeting is contingent on the company failing to receive a viable expression of interest from any third parties soon. The voluntary delisting of AMGO shares from the LSE would leave shareholders with no remaining value as the company enters a Members Voluntary Liquidation.
Therefore, Amigo Holdings Plc has two alternatives by which it could be delisted from the LSE, with the first being the appointment of a liquidator after Amigo Loans Ltd has returned all assets to its creditors. The second option is to initiate a voluntary members liquidation by calling a general shareholders meeting in case there is no third-party interest in its assets.
Only time will tell what will happen to the company and which option shall be executed.
Amigo Holdings (AMGO) share price.
The Amigo Holdings share price surged 57.14% to trade at 0.55p, from Tuesday’s closing price of 0.35p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.