Amigo “unlikely” to meet target funding by May deadline

So far, the firm has said it has received indicative proposals to finance its debt requirements and an indication of interest in equity capital subscriptions to fund £21m – comprising £11m in ordinary share capital and £10m in exchangeable notes.  

Due to this, the guarantor lender is looking to modify its business plan to reduce working capital requirements by up to £3m and whether a potential new scheme – used to eliminate the £15m capital commitment of scheme creditors – is likely to succeed.    

Any new scheme would, however, both require approval by the High Court and creditors. There’s no certainty that this would take place, or even that this route would be pursued by the board – in which case the board is bound to switch to its fallback solution which comprises of an orderly wind-down of the business.  

Amigo’s chief executive Danny Malone said: “The board is very conscious of its duties to its shareholders and wider stakeholders, including Scheme creditors. As we assess the viability of a new scheme, our minds remain focused on a go forward solution for the Company where existing shareholders retain some value but where Scheme creditors can benefit beyond the Fallback Solution.  

“This is a very challenging situation and the board may conclude that another new scheme is not feasible, but we believe it is important to explore fully and swiftly before reaching a conclusion.”