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Amigo Holdings PLC - Bournemouth, England-based provider of guarantor loans - Notes three-month waiver extension for a reduced funding facility expires Friday.
Amigo sealed a deal to extend the waiver period for a securitisation facility performance trigger to September 24, from June 25. It had been extended to June 25 back in November.
"The securitisation facility has been fully repaid from organic cash flows," company says Friday.
Adds: "In light of the group's immediate funding needs and current unrestricted cash balance, the company does not expect the need to operate the securitisation facility in the near term. The board intends to keep the securitisation structure in place to provide the company with more diversity for future funding options."
Amigo will now assume all rights, obligations and liabilities for the facility.
Continues: "As has been reported previously, the board and management team of Amigo continue to work with all our stakeholders to reach agreement on both a revised scheme and its future lending proposition. These negotiations remain ongoing.
"Should the discussions not end in an acceptable scheme then the board reiterates its view that Amigo will be insolvent."
The Financial Conduct Authority is yet to back Amigo's plan, which the company maintains is the best outcome for customers, and the regulator has also confirmed it will not authorise a return to lending by Amigo until after the sanctioning of a new scheme.
The scheme was proposed by Amigo to settle claims following probes from UK regulators into mis-sold loans and the way that Amigo dealt with customer complaints.
Current stock price: 10.82 pence
Year-to-date change: up 28%
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserve.
