Update on the Schemes of Arrangement

RNS Number : 8776H

Amigo Holdings PLC

11 April 2022

 

11 April 2022

Amigo Holdings PLC ("Amigo" or the "Company")

 Update on the Schemes of Arrangement

Amigo Holdings PLC (LSE: AMGO), a provider of guarantor loans in the UK, provides an update on the reported position of the Financial Conduct Authority ("FCA") in relation to the Schemes of Arrangement pursuant to Part 26 of the Companies Act 2006 proposed by ALL Scheme Ltd ("SchemeCo") (the "Schemes").

Amigo has received notification from the FCA that, in relation to the Schemes, it has concluded that:

(1)  The FCA does not consider it necessary to appear at the sanction hearings either to oppose the Schemes or to present any evidence of its own concerning the Schemes unless the court requests or otherwise requires assistance from it.

(2)  There has been a significant improvement in the fairness of the Schemes compared with Amigo's first scheme considered by the court on 19 May 2021.

(3)  Partly as a result of the subsequent improvements, from the information that the FCA has been provided with, the Schemes taken as a whole appear to be appropriate in the circumstances and the FCA is conscious that in an insolvency process redress creditors would likely receive less.

The FCA has made clear that it will continue to engage closely with Amigo, taking into account the outcome of the sanction hearings. The FCA has also reserved its position in respect of the Schemes and its right to intervene, including to engage with the Court process or to take regulatory action against Amigo at any point, if the FCA considers that facts or circumstances have sufficiently changed.

Gary Jennison, CEO of Amigo said : "We thank the FCA for its confirmation that there has been a significant improvement in the fairness of the Schemes compared with Amigo's first Scheme, which was rejected by the Court in May 2021. We also welcome the confirmation that the FCA does not consider it necessary to appear at the sanction hearing to oppose the Schemes or to present any evidence of its own concerning the Schemes. These confirmations are positive steps towards delivering the best outcome possible, given the circumstances, for our customers, creditors and other stakeholders. There remain significant obstacles to overcome, including the need for a significantly dilutive equity issue, to recapitalise the ongoing business given the requirements of the Schemes for the transfer of virtually all existing assets to the redress creditors."

ENDS

Additional Information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this announcement or otherwise.

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's 7.625% Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent.  Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. The person responsible for this announcement is Roger Bennett, Company Secretary.

Contacts:

Amigo Holdings PLC  [e-mail]    

Kate Patrick  Head of Investor Relations 

Roger Bennett   Company Secretary 

Media enquiries  [e-mail] 

Laura Hastings                   07768 790752

Ed Hooper 07783 387713

 

END

 

 

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