Amigo - comment

Amigo has not yet secured sufficient commitments for its equity raise. An orderly wind down, with bonds being repaid at par (current trading price 96p/£), looks increasingly likely. With only £50m outstanding, getting hold of any will be nigh on impossible. Downside is very limited, Amigo intends to redeem the bonds in April and has ample cash on the balance sheet to complete this, regardless of what the restructuring outcome is. 

Amigo is targeting a £45m capital raise, but has failed to secure an anchor investor and only has commitments for £10m - £15m of equity and £10m of exchangeable notes. The deadline is 26 May 23, but Amigo has said a decision to opt for an orderly wind-down (and repayment of the remaining £50m notes) could be made earlier. Aengus