High court approves Amigo Loans' new business scheme

It comes almost a year to the day the high court rejected the firm’s previously proposed redress scheme, which saw the judge urge its directors to restructure the group. 

In its latest update, the firm has said it will look to secure Financial Conduct Authority (FCA) permission to resume lending and raise fresh capital. 

Commenting on the announcement, Amigo Loans’ chief executive Gary Jennison said: “A successful new business scheme will open the door to a fresh source of responsible, regulated finance for millions of people in this country who don’t have access to mainstream banking. 

“We have developed new products to serve this market in a responsible way and believe we have a valuable role to play.”

The new business scheme proposes an initial contribution of £97m to be generated from internal resources - with a significant proportion being derived from the run of the existing loan book. 

It also includes a provision for an additional payment to redress creditors in the event the existing loan book generates a better return than currently anticipated. Additionally, it intends to raise capital to fund both the £15m scheme contribution and future lending. 

Following the announcement, the guarantor lender announced the lifting of the temporary suspension of the listing of its ordinary shares.

Responding to the announcement, regulator the FCA said it will continue to monitor Amigo closely as it launches its business scheme and seeks to meet the conditions for it to resume lending.