Non-Standard Finance (LON: NSF) says the proposed scheme of arrangement has been approved and the company will leave the standard list. The share price slumped 38.2% to 0.1081p and it has fallen by 78% so far this year. There appears no likelihood of shareholders getting anything if the company is wound up.
The scheme of arrangement makes £14m available to satisfy claims by borrowers about loans made by Everyday Loans prior to 31 March 2021, as well as fees owed to the Financial Ombudsman Service arising from complaints.
There was a proposed recapitalisation, but major shareholder Alchemy did not want to back a fundraising. Instead, the business will be transferred to secured lenders.
Everyday Loans was acquired for £235m in December 2015, having earlier that year acquired S&U’s home credit division for £82.5m. Non-Standard Finance joined the standard list on 19 February 2015 when it raised £102m at 100p/share. One of its backers was Woodford Investment Management. At the end of 2015, £160m was raised at 85p/share.