24th May 2022 12:49
(Alliance News) - Shares in Amigo Holdings PLC rose on Tuesday after the company's plan for customer redress got court approval and a one-day suspension of trading was lifted.
Shares in Amigo were up 18% at 7.43 pence each in London on Tuesday at midday. They hit an intraday high of 9.99p, though they remain down 59% in the past 12 months.
On Monday afternoon, the Bournemouth, England-based guarantor loan said its proposed scheme of arrangement was sanctioned by the UK high court.
The scheme is to settle customer claims following probes from UK regulators into mis-sold loans. At a meeting earlier this month, 88% of Amigo creditors approved the scheme, though 83% also approved a back-up scheme to wind down the company.
"The board is pleased that the court has accepted the new business scheme is the best option available for redress creditors who are owed compensation because of Amigo's past lending practices," the company said.
Before the London open on Monday, Amigo had requested suspension of trading in its shares to prevent "asymmetric information" entering the market during the court hearing. However, on Tuesday following the court decision, the UK Financial Conduct Authority lifted the temporary suspension of share trading.
Amigo said that the resumption was "appropriate" and that it is not aware of any inside information that has not been updated to the market.
"We are pleased that the court has decided to allow creditors the chance to maximise their redress payments from Amigo," Chief Executive Officer Gary Jennison said on Monday.
"While we must secure the FCA's permission to resume lending and raise fresh capital, the court's ruling is good news for creditors, customers and employees, and it takes us a step closer to delivering compensation as well as drawing a line under the mistakes of the past."
By Sophie Rose; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Amigo