UK sub-prime lender Amigo fails to find cornerstone investor for capital raise

LONDON (Reuters) - Amigo Holdings has failed to find a cornerstone investor for its planned capital raise, and is looking for a syndicate of investors to pull together 45 million pounds ($55 million), the UK sub-prime lender said on Monday.

Amigo won court approval in May 2022 for a compensation scheme for past customers and a rescue plan for the business.

The company ceased lending in November 2020 and has been scrambling for survival after a deluge of customer complaints of mis-selling loans.

It received approval from Britain's financial regulator in October 2022 to return to lending under certain conditions.

Amigo said in a statement it "has been unable to secure acommitment from a cornerstone investor to underwrite the whole of the capital raise" and "is therefore assessing whether there is sufficient interest for a syndicate of such investors to be formed in order to support a 45 million pound capital raise".

($1 = 0.8179 pounds)

(Reporting by Carolyn Cohn; Editing by Jan Harvey)