Amigo Loans to be liquidated after failing to raise survival cash

The FCA last month found that Amigo Loans put consumers at ‘high risk’ of harm. Photograph: M4OS Photos/Alamy

The sub-prime lender Amigo Loans is to be liquidated after it failed to raise enough money to fund compensation to customers.

After months of trying to come up with a rescue plan, Amigo said it would stop lending with immediate effect and be placed into an orderly wind-down, with all surplus assets to be transferred to the creditors of its compensation scheme. The shares crashed 75% to 0.4p on the news.