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ZA= South Africa I believe
. Co.za is South Africa.
Founders of Wonga are South African.
My belief is if Amigo does pull through with the SoA and isn't wound up, then there's no reason why the company couldn't rerate significantly. Nothing would be preventing it from lending again.
Just need the right strategic team to ensure that systems are robust and lending is done responsibly.
I'd like to think they'd err on the side of caution with new lending, which is good and bad in some respects. They'll be less likely to lend to people who can't afford to borrow, but they'll also likely reject some loans that would have been good.
Anyway, future is bright for Amigo! GLA
You don't want to leverage down?
well if it gets to 52p thats ny break even
JP Morgan does put 5.9 m in for know reason. And others ...... long hold for me. The future is bright.
I already said..the SP will rise until relending announced and then they will swap equity for debt. They will get a stable income funding Amigo 2.0 from the rise in the SP. This is why the rise will happen before everyone thinks and stop when they think it should take off.
I still think that the involvement of JPM, Bybrook and other IIs is a positive thing and I feel it's calculated for the upcoming court case. Does an investment bank like JPM feel the need to pump and dump on a relatively small company like Amigo? Would they waste the time and the resources to do so? These are the questions I keep asking myself.
Lth, don't disagree amigo is needed, I was just trying to assess the chances of something passing. I was comparing to a company which did loans however disgusting the interest rate was who also offered a deal which wasn't accepted. I plan on holding my shares however little they are as I hope that it does pass. I see huge potential but i am still interested in the risk side
And Wonga didn't go under. Just found a link to them ending with .co.za (not sure where za is)
i dont see any link, Amigo offer loans at a very competitive price and Wonga were in the 1000%+ APR range. Amigo is very much needed.. wonga not so much
LTHcine I do not fear these little devils :-) but I wonder about the influence they may have on Amigo customers in regards of voting. For me they are nothing but annoying little jumped up leftists who would love nothing more than the finance industries to collapse.
Mouse, yes it was, but still had issues with issuing loans and went under when couldn't pay claimants. Its not 100% comparison but there is a similar link
ok thaw, but to be honest, I think everybody who forwards a claim, should be investigated if they gave the correct information and if it turns out they didn't, then they shouldn't just get no compensation, they should be fined instead, considering the level of stress they have been causing us investors lol :-)
mouse, do not fear! Jimmy and Sarah mean very little to the outcome of the SOA vote. Luckily Gary has offered upto 1 million previous customers/guarantors "something" rather than "nothing" if they vote yes. A very clever man is our Gary ;)
Inforanickel, wasn't Wonga a payday loan company? I can't remember, so might be wrong. If it was, then it can't be compared to Amigo.
"Amigo, supported by its independent financial and legal advisers, believes that failure of the Scheme will result in the Scheme Creditors receiving zero cash payments, given the secured creditors who rank ahead of the unsecured Scheme Creditors. This zero cash payment is in comparison to their sharing in £15 million to £35 million, plus a cash contribution to the Scheme based on 15% of pre-tax profit for the next four financial years ending 31 March 2025 (see paragraph 18 of the Letter), an increase on the amount in the announcement dated 21 December 2020. Amigo strongly believes that the Scheme is in the best interests of the Redress Creditors, its customers, the FOS and all its stakeholders."
My apologies. Decided to quote rather go by memory, its been a while. Appreciate the input
Mouse - I wouldn’t worry about camel or Jimmy. They may influence some but remember: Amigo had 4.5 star customer reviews before all this started.
Customers only actively claimed because of CMCs. These people claimed with money as motivation and that is what they’ll get if they vote YES.
When wonga failed what was there offer? Do we know? Is amigo favourable to that of wonga? Just wanted to know in terms of chances of succeeding
Amigo dont need FCA permission to restart lending, but Gary has said that relending wont start until the FCA are happy with future plans or SOA goes through so they can focus soley on SOA. Will look a lot better in court if Amigo has FCA go ahead for future lending practices.
*3) Amigo will approach the High Court on March 30th offering to set aside 15m possibility of adding no more than £20m to make £35m, and 15% of profits over the next three years.
Holdemorfoldem, the only thing that concerns me a little, is the likes of camel lady and her side-kick jimmyg56 have now had months to persuade customers to vote against the SOA. The latter even in here.
I keep seeing the same questions and lack of awareness/knowledge by newcomers, so here are a couple of things to assist. Please feel free to correct me or add further info. This is by no means an attack on newbies, just trying to help.
1/ Amigo DO NOT need permission via FCA to lend to customers, they stopped voluntary on mass yet continued to lend to key workers such as NHS
2/ Amigo are in a pickle, this has been the case for some time... nothing new. The scheme of arrangement (SOA) offers a lifeline for Amigo whilst ensuring all customers claiming a refund, will receive some form of compensation. WITHOUT the SOA not a lot of customers will receive compensation as Amigo may likely go bust.
3/ Amigo will approach the High Court on March 30th offering to set aside 15m rising to 35m, and 5% of profits over the next three years.
4/ If agreed Amigo then need 50% of creditors (customers they owe money to) to agree.
5/ If agreed Amigo must as the courts to bring it into effect, the clock starts and customers have six months to make a claim
6/ Amigo resumes lending in a more ethical manner after reviewing their practices
In terms of share price. My opinion is this will rise and react to the key points raised above. ONLY risk what you can afford to loose. Personally, I don't have all my eggs in one basket. Regarding Amigo I'll sell 3k shares at £1 and hold the remaining 25k share indefinitely. GLA