Argentex Seeks Emergency Funding as Trump Tariffs Trigger Liquidity Crisis
Currency management firm Argentex Group Plc (LON: AGFX) is seeking an emergency loan or potential sale after experiencing a severe liquidity crisis triggered by margin calls following US President Donald Trump’s recent tariff announcements.
The London-listed company, which had a market value of £52 million ($69 million) before trading in its shares was suspended on Tuesday, said its “liquidity position further deteriorated” and now requires “an immediate cash injection to ensure the company’s continued solvency.”
Argentex is in advanced discussions with IFX Payments about a potential takeover after rejecting offers from two other parties — Lumon Acquisitions, a vehicle of Pollen Street Capital, and a joint bid from fintech developer Terry Clune and Argentex’s founder and former CEO Harry Adams.
“This further reduction in liquidity necessitates an immediate cash injection to ensure the company’s continued solvency, without which the board would have to take immediate steps to secure the company’s future and protect value in the business for the company’s creditors and other stakeholders,” the company said in the statement Wednesday.
According to takeover rules, IFX Payments must make a firm offer or walk away by May 20 at 5 p.m. London time. Lumon said in a statement that its offer to acquire Argentex and provide financial support “remained on the table.”
Argentex has been hit by margin calls linked to its foreign exchange derivatives book, forcing the company to preserve cash and increase collateral from counterparties. The firm is seeking a bridging loan from IFX to address its immediate working capital needs.
Argentex shares will remain suspended until further announcements regarding a potential deal.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
