UK’s Amigo says CFO Mike Corcoran to step down

Jan 24 (Reuters) – British subprime lender Amigo Holdings (AMGO.L) said on Monday Chief Financial Officer Mike Corcoran will step down immediately, on a day where its shares fell as much as 62% after the firm flagged potential insolvency.

Amigo earlier in the day said it could enter insolvency if a new business rescue plan and a likely rights issue were not approved by creditors and in court, and shares on the London Stock Exchange closed 42% lower at a record low of 3,480 pence. read more

Amigo has been scrambling for survival after a deluge of customer complaints early last year of misselling loans. The London High Court in May 2021 had also rejected the company’s initial business rescue plan for short-changing compensation claimants.

The new 97 million pound ($131.18 million) rescue plan proposed in December would likely involve a rights issue of at least 19 new shares for every existing share, diluting the stakes of existing investors, Amigo said. read more

“While it is positive that progress on the Scheme of Arrangement and Amigo’s new business plans are progressing, the statement also starkly outlines the extent of prospective dilution for existing shareholders,” Ronan Dunphy, banking analyst at Goodbody, said.

“Should creditors vote for the New Business Scheme and the…