Non-Standard Finance recapitalisation plan in doubt after top investor withdraws

Non-Standard Finance

18/05/2023 07:31

LONDON, May 18 (Reuters) - Subprime lender Non-Standard
Finance  NSF.L  said on Thursday its top shareholder Alchemy was
no longer willing to support its plans for a fresh equity raise
citing current market conditions, in a significant setback to
the firm's recovery plan.
    One of Britain's last remaining subprime lending
specialists, NSF has been battling to keep its business afloat
and in April said it had provisionally struck a critical
debt-for-equity swap to underpin its balance sheet.
    Following Alchemy's decision, the NSF board said an
alternative transaction, involving transfer of business to
secured lenders in exchange for release of a portion of their
secured debt and provision of a new lending facility, was the
more likely outcome.
    Toby Westcott, Alchemy's nominee non-executive director, has
stepped down as a director of company with immediate effect.
    The alternative transaction, if successful, would secure the
future of its Everyday Loans business and allow it to pursue its
growth plans, but would likely wipe out NSF shareholders.


 (Reporting by Sinead Cruise, editing by Andres Gonzalez)
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