Amigo Holdings PLC Scheme of Arrangement: First Court Hearing Result (0205U)
March 30 2021 - 10:50AM
UK Regulatory
TIDMAMGO
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 investors@amigo.me
Kate Patrick Head of Investor Relations
Roger Bennett Company Secretary
Media
Hawthorn Advisors amigo@hawthornadvisors.com
Lorna Cobbett Tel: +44 (0) 7771 344 781
Notes to Editors:
-- GBP15.0 million in cash will initially be made available for
claims under the Scheme, with up to a potential further GBP20.0
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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END
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