19th Oct 2020 11:42
(Correcting the FCA deadline for managing complaints backlog.)
(Alliance News) - Amigo Holdings PLC on Monday said it will have to seek approval from UK Financial Conduct Authority to transfer assets outside the company including both discretionary cash payments to the board directors and dividend payments.
The Bournemouth, England-based guarantor loans provider added that the asset voluntary requirement with the FCA does not impact the day to day running of Amigo or its ability to continue to pay down debt.
The company assured that it has "adequate liquidity" to fund operations and support customers, and that it continues to be focused on addressing "legacy issues, restoring confidence in its corporate governance and building a sustainable business for the long term".
Shares in Amigo were down 7.7% at 9.63 pence each in London.
Year-to-date, the stock has lost around 85% in value as the company tries to clear up a massive complaints backlog and has separately been embroiled in a dispute with its founder and former chief executive, James Benamor, who made a tilt at retaking the top job at the subprime lender.
Shareholders, however, rejected Benamor's efforts to return in September by voting against all proposals put forward by his investment vehicle Richmond Group.
The company's complaints backlog is subject of a separate voluntary requirement with the FCA, and Amigo has missed the deadline to cut the backlog to an acceptable level during the coronavirus pandemic.
In May, the company had been given until June 26 to get on top of the backlog. This was subsequently extended until October 30.
By Tapan Panchal; [email protected]
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