Amigo Holdings PLC

Scheme of Arrangement Update

RNS Number : 3582V
Amigo Holdings PLC
13 December 2021

13 December 2021

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

Scheme of Arrangement Update

Amigo Holdings PLC (LSE: AMGO), a leading provider of guarantor loans in the UK, is updating on its proposed Schemes of Arrangement ("Schemes").


ALL Scheme Ltd ("SchemeCo"), the wholly owned subsidiary incorporated for the purpose of SchemeCo applying for a Scheme of Arrangement under Part 26 of the Companies Act 2006, is today issuing the Practice Statement Letter ("PSL") to current and former customers (both borrowers and guarantors) of Amigo Loans Ltd and to the Financial Ombudsman Service ("FOS") ("Redress Creditors"). The PSL will provide information to the FOS and to customers who believe they may have potential redress claims in relation to historic loans made by Amigo Loans Ltd before 21 December 2020.  The PSL is issued pursuant to Practice Statement (Companies: Schemes of Arrangement under Part 26 and Part 26A of the Companies Act 2006), and explains two proposed Scheme options, the terms of which reflect those outlined in the announcement by Amigo Holdings PLC on 6 December 2021 regarding the agreement reached with the Independent Customers' Committee ("ICC"). The letter can be found at


The two Schemes being proposed by the SchemeCo are a 'New Business Scheme', which is contingent on new lending restarting and Amigo completing a successful equity raise, and a 'Wind-Down Scheme', which involves the managed wind-down of the Amigo Loans Ltd business under a Scheme framework.  As previously announced, the SchemeCo intends to ask Redress Creditors to vote on both Scheme options. If both options are approved by the Redress Creditors, SchemeCo will then submit both options to the Court for sanction. The Court will be asked to consider the New Business Scheme first, as the preferred option of both the Board and the ICC, before it considers the Wind-Down Scheme. If the Court does not sanction the New Business Scheme, the Court will be asked to sanction the Wind- Down Scheme as a fall-back solution. The Court convening hearing for the Scheme is listed for 16 February 2022.


The Board and the ICC are both of the view that the New Business Scheme will provide a better outcome for Redress Creditors than the Wind-Down Scheme. Details of the estimated pence in the pound  of redress that will be provided to Redress Creditors is included in the PSL; the New Business Scheme is estimated to provide 42 pence in the pound compared with the Wind-Down Scheme which is estimated to provide 29 pence in the pound. 


Amigo Holdings PLC's shareholders and the other creditors of Amigo are not party to the Schemes. There is therefore no action for any such persons to take. The effect of this is that the Company will not be seeking prior authority from shareholders to proceed with either Scheme although the New Business Scheme will require consent of shareholders to the proposed equity raise. The Board is pleased that this is the next step towards finding a fair resolution for all stakeholders which it believes either Scheme can achieve. If neither of the New Business Scheme or the Wind-Down Scheme is approved by the creditors or neither is sanctioned by the Court, Amigo Loans Ltd will enter into an insolvency process.


Gary Jennison, CEO of Amigo, said:

"We are pleased to be writing to customers with a new Scheme proposal to meet redress claims relating to historic loans. In shaping the proposal, we have listened closely to the views of the Independent Customers' Committee.

 "The ICC has agreed the terms of the offer, which provides a choice between a New Business Scheme and a Wind-Down Scheme. The New Business Scheme, which is contingent on a successful capital raise, offers Redress Creditors a significant improvement on the terms offered under the first Scheme and it is the preferred choice of both the ICC and the Board of Amigo. 

 "Shaping a new Scheme has been a long process and I'm grateful to all stakeholders for their patience. We recognise that significant hurdles remain, but today's letter is a vital next step towards dealing with our historic complaints liability and finding a fairer resolution to righting wrongs of the past. We hope a successful new Scheme will also allow a changed Amigo, under a new management team, the opportunity to bring forward a new, regulated lending proposition for a segment of the market where options are diminishing and demand remains high."



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.

The person responsible for this announcement is Roger Bennett, Company Secretary.


Amigo Holdings PLC  [email protected]    

Kate Patrick   Head of Investor Relations 

Roger Bennett   Company Secretary 


Media enquiries  [email protected] 

Tom Baldock   07860 101715

Ed Hooper  07783 387713


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