|
Non-Standard Finance PLC - Wakefield, West Yorkshire-based consumer lending firm - Provides update on proposed recapitalisation and alternative transaction further to announcements on March 17 and April 14. Says Alchemy, the group’s largest shareholder, is no longer willing, in the current environment, to participate in the equity raise under the recapitalisation. Company continues to press ahead but feels the alternative transaction involving the transfer of the group’s business to secured lenders in exchange for the release of a portion of their secured debt and the provision of a new lending facility is now a more likely outcome. Explains both the alternative transaction and the proposed recapitalisation will secure the future of the Everyday Loans business. But the proposed recapitalisation will materially dilute interests of shareholders, most likely to negligible value, unless they participate in the equity raise, and the alternative transaction will result in no recovery for shareholders. If the alternative transaction is implemented, says the most likely outcome is an orderly wind down. If both the proposed recapitalisation and the alternative transaction fail, then the group would remain insolvent. Adds Toby Westcott, the Alchemy nominee non-executive director of the company, has stepped down with immediate effect. Current stock price: 0.25 pence, down 45% in London on Thursday 12-month change: down 89% Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
