Amigo Loans CEO Steps Down as Company Seeks Lifeline Before Cash Runs Out in July

Amigo Loans is facing a critical deadline to secure a lifeline before July 2025, as it continues to search for a suitable "reverse takeover" target. The publicly-listed company is still reeling from its previous struggles with subprime guarantor loans, which were mis-sold to many customers, resulting in compensation and a narrow escape from a fine. After a period of transitioning to a new platform, RewardRate, offering unsecured loans, Amigo Loans stopped offering loans more than two years ago and began winding down the business due to financial constraints.

Key Takeaways:

• Amigo Loans CEO Kerry Penfold is stepping down immediately, effective July 2025, and will assume the role of boss of the company's subsidiaries until the end of the month.
• Nicholas Beal, the company's chief restructuring officer, has joined the board as an executive director and will take on Ms. Penfold's responsibilities.
• Between 2005 and 2020, Amigo Loans specialized in subprime guarantor loans, which were offered at high interest rates to people with poor credit histories or those who struggled to borrow from traditional lenders.
• The company was found to have mis-sold to many customers, leading to compensation and a close call with a fine from the regulator.
• Amigo Loans returned to lending in 2022 via the RewardRate platform, which offered unsecured loans, but stopped offering loans more than two years ago and began winding down the business.
• The company is still searching for a suitable "reverse takeover" target, which would enable a private firm to acquire and list Amigo Loans on the public markets without an initial public offering (IPO).
• Amigo Loans has warned that its current resources will only be sufficient until early July 2025, after which it will need to raise more cash or face insolvency.

Statistics:

• 2005-2020: Amigo Loans specialized in subprime guarantor loans.
• 2022: Amigo Loans returned to lending via the RewardRate platform.
• 2025 (July): Amigo Loans will run out of cash if it fails to raise more funds.
• 2+ years: Amigo Loans stopped offering loans and began winding down the business.

Sources:

• Amigo chairman Jonathan Roe:

"Kerry Penfold has done an amazing job leading the team through to completion of a very complicated scheme of arrangement process. She has decided this is the right time to move on to find a new opportunity."

• Nicholas Beal: joined the board as an executive director.
• Amigo Loans: current resources will only be sufficient until early July 2025.