(Reuters) -British Subprime Lender Amigo Holdings announced Monday that Mike Corcoran, Chief Financial Officer of the company, will resign immediately. This comes after its shares plummeted as high as 62% on Monday following a flagging potential insolvency.

Amigo stated earlier that the company could go into insolvency if it fails to approve creditors’ plans for a rescue and likely rights issues. The London Stock Exchange shares closed at record lows of 3,480 pence, 42% below the previous day.

Amigo is struggling to survive after receiving a flood of complaints from customers about misselling loans. London High Court had rejected Amigo’s first business rescue plan, which was intended to compensate short-changing claimants for compensation.

Amigo indicated that December’s new rescue plan for 97 million pounds (or $1131.18 million), would probably include the rights to issue at most 19 additional shares per existing share. It will likely dilute existing investors.

Ronan Dunphy from Goodbody said that while it was encouraging to see progress in the Scheme of Arrangement’s business plans and Amigo’s new business plans, “the statement starkly outlines how much potential dilution exists for existing shareholders.”

Amigo chief executive officer Gary Jennison declared in a statement, “Should creditors vote to approve the New Business Scheme”

Amigo must have them in order to live and prevent insolvency.

($1 = 0.7394 pounds)