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Amigo Holdings PLC (AMGO)

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Tuesday 01 June, 2021

Amigo Holdings PLC

Scheme of Arrangement: update

RNS Number : 3110A
Amigo Holdings PLC
01 June 2021
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE                 1 June 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, provides an update on the scheme of arrangement (the "Scheme") of ALL Scheme Ltd ("SchemeCo") announced on 25 January 2021.

Following the Court judgment announced on 25 May 2021 where the Scheme was not approved, Amigo can confirm that SchemeCo will not be pursuing an appeal.  The Board of Amigo continues to consider all options, which includes insolvency, and whether it might be possible and appropriate, given the cost of a scheme, to promote another scheme of arrangement to avoid insolvency. 

The issues and challenges facing Amigo are complex and Amigo will continue to liaise in the coming weeks with its regulator the Financial Conduct Authority ('FCA') to seek to address its concerns as quickly as possible.  Amigo confirms that, as announced on 25 May 2021 and previously, to ensure equal treatment of customers with redress claims, the payment of redress creditors will continue to be stopped as set out in the announcements dated 25 May 2021 and 21 December 2020 until further notice.

Given the continued uncertainty following the Court judgment dated 25 May 2021, Amigo currently anticipates delaying the issuance of its financial results for the year ended 31 March 2021. Under the terms of the Notes (as defined below), Amigo should publish its financial results within 120 days of such date.  The Company currently anticipates publishing these financial results before 29 July 2021 as permitted by the Notes.  Further updates will be provided in due course as appropriate.

Gary Jennison, Chief Executive Officer of Amigo, commented:  "Withouta 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." 

 

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.

 

Company

Amigo Holdings PLC  [email protected]    

Kate Patrick                       Head of Investor Relations 

Roger Bennett   Company Secretary 

 

Media

Hawthorn Advisors  [email protected]  

Victoria Ainsworth          Tel: +44(0)7732 604 370

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.

Senior Secured Notes

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.

-ENDS-

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