Non-Standard Finance tumbles after co warns of potential insolvency

Non-Standard Finance

13/02/2023 11:09

(Repeats with no changes to text)
    ** Shares of sub-prime lender Non-Standard Finance  NSF.L 
drop as much as 11.6% to over four-month low of 0.42p; stock top
loser across all London stocks  .FTAS 
    ** Co says in talks with FCA regarding potential scheme of
arrangement to prevent possible group-wide insolvency 
    ** If scheme is sanctioned, NSF to hold a capital raise to
redress its liabilities and further the growth of its
branch-based lending unit Everyday Loans (ELL)
    ** Continues to engage with secured lenders about
alternative transactions to ensure that ELL remains a going
concern, if the capital raise proves unsuccessful
    ** Says reduced its gross borrowings by 20 million pounds 
($24.11 million) to 255 million pounds following repayment of
its 45 million pounds RCF last July
    ** In Sept of 2022, co informed investors that it would need
to raise fresh capital to prevent insolvency following the
breach of its first and second quarter lending covenants
    ** Including current session losses, the stock has fallen
28.3% YTD
 
 ($1 = 0.8297 pounds)
 (Reporting by Raechel Thankam Job)
 ((RaechelThankam.Job@thomsonreuters.com;))