Amigo Guarantor loans

[wjw22]

Amigo's controlling shareholder has announced that it is a willing seller of its 60% holding in Amigo.

Investegate: Strategic Review and Statement from Richmond Group Ltd

Quote

The strategic review will consider various aspects of the Company's strategy, ownership and operating model, including the potential sale of the Company as a whole, the sale of parts of the group, reorganisation of entities within the Company's group, the sale of the UK business, the sale of certain books of business including a potential de-listing of the Company's shares. The strategic review will include a formal sale process of the Company, further details of which can be found below.

More here:

FT Alphaville: Markets not live, Monday 27th January 2020 (Registration but not subscription required.)

It looks like having both a high-risk borrower and a high-risk guarantor on the hook doesn't reduce the lender's risk much after all.  I went short at 66 and I don't think Richmond Group will find a buyer.

[wjw22]

Amigo's founder and controlling shareholder says Amigo is committing slow-motion suicide in his blog.

FT Alphaville has more.

I think if Amigo was going to seek a judicial review of the Financial Ombudsman Service's guidance on irresponsible lending then it would have done so by now.  It looks like insolvency is coming.