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Amigo considers insolvency following scheme rejection
Following the court’s rejection of Amigo’s redress scheme, the guarantor lender has said in an update that it will not be appealing the decision and is considering all options, including insolvency.
Senior Journalist covering the Credit Strategy, TRI News and Reward Strategy brands.
Senior Journalist covering the Credit Strategy, TRI News and Reward Strategy brands.
The Scheme was rejected last week, and the judge urged the directors to consider restructuring.
Amigo explained that it is considering whether promoting another scheme of arrangement would be possible, to avoid insolvency.
Amigo also confirmed that, to ensure equal treatment of customers with redress claims, the payment of redress creditors will continue to be stopped until further notice.
Gary Jennison, chief executive of Amigo, said: "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. The board is committed to finding the best solution it can for Amigo’s customers and other stakeholders and will be working with its stakeholders, including the FCA, to achieve that solution as quickly as it can."
The update added that Amigo is currently anticipating delaying the publication of its financial results for the year ended 31 March 2021. The publication of the results is currently anticipated before 29 July 2021.
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