Scheme of Arrangement: First Court Hearing Result

RNS Number : 0205U

Amigo Holdings PLC

30 March 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

FOR IMMEDIATE RELEASE  30 March 2021

Amigo Holdings PLC

("Amigo" or the "Company")

Scheme of Arrangement: Result of first Court Hearing

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 convening hearing which took place today, 30 March 2021.

After close of market today, the High Court granted an order including that SchemeCo can convene a meeting of the Scheme creditors to consider and vote on the Scheme. Accordingly, borrowers and guarantors, past and present, and the Financial Ombudsman Service (the 'FOS') will be able to vote on the Scheme via the dedicated Scheme website, www.amigoscheme.co.uk. Details of the creditors' meeting, to be held on 12 May 2021, will be released on this site in due course. If creditors vote for the Scheme, the final Court sanction hearing is expected to be held on 19 May 2021.

Amigo, supported by its independent financial and legal advisers, continues to believe that the Scheme will provide the best outcome for the Scheme creditors, who are Amigo's 700,000 past customers, 300,000 present customers and the FOS, in a manner that is fair and equitable.  

Amigo believes that failure of the Scheme would result in the insolvency of Amigo, where customers and the FOS would receive zero cash payments, given the secured creditors who rank ahead of the unsecured Scheme creditors.

Gary Jennison, CEO of Amigo, said:   "We are delighted that the Court agreed that the Scheme should go ahead. We look forward to our customers having an opportunity to vote and support the Scheme, which we believe is the only real option for customers who are due redress to receive cash compensation. Given it is in their best interests and the real alternative is an insolvency, we strongly encourage our 700,000 past customers and 300,000 present customers to vote for their money and support the Scheme. Our customers will get the full information they need to understand exactly what the Scheme means for them, including details of a dedicated phone number and email address to help answer any questions.

"We are a new management team focused on the turnaround of Amigo and committed to fixing the problems of the past. It is vital that the millions of UK adults who are unable to get finance from mainstream lenders are able to access credit from regulated businesses such as Amigo, rather than less reputable alternatives. We want to play our part in financial inclusion and ensuring the underserved have somewhere to turn for help and support."

www.amigoplc.com

Company

Amigo Holdings PLC  [e-mail]    

Kate Patrick   Head of Investor Relations 

Roger Bennett   Company Secretary 

Media

Hawthorn Advisors  [e-mail]  

Lorna Cobbett   Tel: [phone]

Notes to Editors:

§ £15.0 million in cash will initially be made available for claims under the Scheme, with up to a potential further £20.0 million dependent on the volume of claims received from current customers relating to loans with outstanding balances. Amigo will continue to be responsible for all customer balance adjustments in full.

§ Amigo will make an annual cash contribution to the Scheme based on 15.0% of pre-tax profit for the next four financial years beginning on 1 April 2021 up to 31 March 2025.

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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