Subprime lender Amigo says 'reverse takeover' deal terminated

By Huw Jones

LONDON (Reuters) -A reverse takeover deal involving Amigo Holdings, Craven House Capital and various individuals signed last month has been terminated, the British subprime lender said on Thursday as if faces voluntary liquidation.

Amigo, which provides credit to borrowers excluded from mainstream banks, is in an "orderly solvent wind-down" after the cost of compensating customers for loans mis-sold in the past pushed it to the brink of collapse.

"This is disappointing news as the transaction, in the form of a reverse takeover of Amigo, offered a solution that could have provided a future for shareholders, offering some small value that wouldn't be available otherwise," Amigo CEO Danny Malone said in a statement.

Malone, who earlier this year said he would leave Amigo, had been asked by the company's board to remain in his post until the end of the year to help with the negotiations.

"As we continue the orderly wind-down of our lending business, we remain open to assessing other viable options that could be beneficial for our shareholders, our people and wider stakeholders," Malone said on Thursday.

If no viable alternative solution emerges, Amigo would call a shareholder meeting in the near future to approve a delisting and enter into voluntary liquidation, the company said.

Trading in the company's shares was suspended on Oct. 17 by the Financial Conduct Authority due to the lack of information about the proposed reverse takeover.

Amigo said it would ask the FCA if the shares could resume trading.

(Reporting by Huw Jones; editing by Jason Neely and Barbara Lewis)