(Alliance News) - Amigo Holdings PLC on Monday said it has agreed an extension of the securitisation facility performance trigger waiver period with its bank to allow both parties to finalise more amendments.
The waiver period has been extended to August 14 from July 24, after originally being announced on May 27.
During the extension period, performance triggers relating to the securitisation facility will continue to be suspended. The securitisation will move into gradual amortisation from 14 August 2020 if further amendments are not agreed prior to that date, the troubled guarantor loans provider said.
This comes after Amigo Holdings put itself up for sale back in January, but ended this following the withdrawal of potential acquirer. In April its majority owner, Richmond Group Ltd's James Benamor, called for the lender's entire board to be ousted after saying the company is "committing slow motion suicide", but shareholders rejected Benamor's resolutions.
Amigo and Benamor settled their dispute in June, with Benamor deciding to sell his entire 61% stake in the company.
Amigo Holdings had more than GBP135 million in cash on June 30, enough to continue to fund operations and support its customers, the company said.
Amigo Holdings shares were down 2.2% at 7.82 pence each in London on Monday morning.
Amigo floated in June 2018 at a price of 275 pence, giving a market capitalisation of GBP1.31 billion. Since then the stock has plummeted, reducing the company's market capitalisation to GBP37.2 million.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Amigo (AMGO)