1st Jun 2021 13:11
Amigo Holdings PLC - Bournemouth-based provider of guarantor loans - Says board considering all options for company, including insolvency, after Amigo decides to not appeal the rejection by the UK High Court of its scheme to settle compensation claims. Also considering the possibility of promoting another scheme of arrangement to avoid insolvency. "The issues and challenges facing Amigo are complex, and Amigo will continue to liaise in the coming weeks with its regulator the Financial Conduct Authority to seek to address its concerns as quickly as possible," Amigo says Tuesday. The scheme was rejected by the court after the FCA raised objections, saying it wasn't fair to customers in its current form. "Without a scheme, Amigo faces insolvency as it will be unable to satisfy its customer compensation claims as well as meeting the legally binding funding obligations owed to its secured creditors," Chief Executive Officer Gary Jennison says.
Amigo expects to issue its results for the financial year that ended March 31 by July 29.
Current stock price: 7.60 pence, down 8.4% on Tuesday
Year-to-date change: down 10% from 8.45p on December 31 and down 74% from 2021 peak of 29.50p on May 10
By Tom Waite; [email protected]
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