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(Alliance News) - Amigo Holdings PLC said on Monday it is issuing a practice statement letter to its current and former customers regarding the redress claims in relation to its historic loans.
Chief Executive Gary Jennison said that the letter was a "vital next step" towards dealing with the historic complaints liability and finding a fairer resolution to righting the "wrongs of the past".
The letter will explain two proposed schemes of arrangement. The "new business" scheme, which is contingent on new lending restarting and Amigo completing a successful equity raise, and the "wind-down" scheme, which involves the managed wind-down of the Amigo Loans Ltd business under a scheme framework.
Amigo reaffirmed its preference for the new business scheme in accordance with the opinion of the Independent Customer's Committee.
If both options are approved by Amigo's former and current customers along with the Financial Ombudsman Service, Amigo will then submit both options to the court for sanction with a preference for the new business scheme stated. 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.
If neither scheme is approved by the creditors or neither is sanctioned by the court, Amigo will enter into an insolvency process.
The court convening hearing for the scheme is listed for February 16.
Shares in Amigo were up 3.8% at 6.29 pence on Monday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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