Midas Capital chief executive, Simon Edwards, says the company is in talks over a possible sale of the business following share sliding 80% yesterday.
Edwards says it is considering all options including a merger or acquisition after the debt swelled to £29.8m last year.
The company has issued a statement to the stock market confirming it is discussing a temporary waiver of its banking covenants until April 30 2009.
The statement also says the business is trading in line with expectations and remains cash generative.
The company says it has met all of its interest and principal payments on time, but in view of market conditions is working towards the temporary waiver.
Midas was formed in 2002 and in February last year merged with iimia Miton Optimal to create Midas Capital.
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body