Amigo Holdings appoints joint liquidators
Guarantor loan company Amigo Holdings said on Tuesday that it has appointed Chris Laverty and Sean Croston of Grant Thornton UK Advisory & Tax as joint liquidators to carry out voluntary liquidations of its subsidiaries.
Amigo said on Tuesday that before this process began, its subsidiaries had transferred all available cash, amounting to approximately £740,000, to the London-listed group.
In return, Amigo agreed to indemnify the liquidators and the subsidiaries against all costs and expenses associated with winding up the affairs and dissolving these entities by way of solvent liquidations. These costs and expenses are expected to total around £290,000, leaving Amigo with approximately £450,000.
Amigo said the funds will be used to cover its "minimal ongoing operating expenses" and support its continued efforts to identify a suitable reverse takeover target.
Importantly, Amigo noted that the funds arose as the costs of making and administering a further scheme payment were more than the funds available for distribution.
As of 0845 BST, Amigo shares had shot up 23.08% to 0.40p.
Reporting by Iain Gilbert at Sharecast.com
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