Those that can not afford to lose their investment will be baling out. Those who can not afford to lose their whole investment may choose to sell some of it. There will be others buying in and seeing it as a huge gamble with a huge potential upside. There are no guarantees which way this will play out. GLA investors.
Bransonbull, The whole issue was created because FCA moved the goalposts and Hamish Patton did not make the necessary changes to lending practices he should have. Hamish Patton oversaw Amigo continuing to offer loans against the updated FCA guidelines. Hamish Patton also states to FCA that Amigo would pay redress from previous loans that occurred under previous FCA guidelines. Hamish Patton had a duty of care to Amigo past loans which he did not protect and he also did not make the necessary changes on new loans. He was a total waste of space and brought the comps y to its knees. He should be in prison but no FCA approved him for a new role In another finance company. A total joke
Is it a signal for an RNS tomorrow? Some believe it is but I have always been sceptical. Your thoughts?
All companies have a going concern report on their accounts. It headlines expectations ahead and would highlight any potential issues that may arise. No doubt a lot of companies will start noting pandemics in these reports more regularly now.
Lakeside, I hope your right. I have been under water on this share for 18 months so hopefully today will change that and the next few months will have made holding them worthwhile after all.
G20304050, you are talking rubbish. The business needs an SOA to cap the claims at a sustainable manageable cost. The business can not start lending or seek investment until it has claims under control. No one knows how much the claims will total £200m-£600m etc. An SOA needs to be actioned to make the business sustainable and to also start paying off customer claims in a managed affordable way.
Stevielad66 from RNS, The FCA notified Amigo and SchemeCo after market close on 23 March 2021 that, having completed its assessment of the terms of the Scheme, while the FCA does not support the Scheme, it is not currently proposing to take any additional regulatory action that might stop the Scheme were it to be agreed by the Scheme creditors and sanctioned by the Court, but the FCA reserves the right to change its position. This is based on information currently made available to the FCA, including the skilled persons report, relating to the Scheme, which is in the process of finalisation. The Scheme creditors are Amigo's 700,000 past customers, 300,000 present customers and the Financial Ombudsman Service (the 'FOS').
Vinson, claims have already been paid out on the basis that claimants lied on applications and could not afford the loan. They have also paid out on top up loans even after they have been fully repaid There is no logic in any of this. These issues should have been fought by Hamish Patton but he rolled over and told the FCA take as much money as you want. He should have been the one requesting a judicial review rather than throwing Amigo loans under a bus. An absolute waste of space who should be being investigated for not doing his job. In reality what is the difference between a customer requesting a top up loan or a credit card company increasing your limit??
Why all the talk on doing a cash raise. Would it not be more economical and fair to either buy up a percentage of the shares and put them in the pot or issue an additional say 75million shares and put them in the SOA pot. The benefit of a higher share price longer term then benefits everyone. Sell 25% of these shares at the end of each financial year over 4 years and add the cash value into the SOA pot. We would see a quite minimal dilution of around 15%. The claimants own a chunk of the company for the 4 years and also reap the rewards of it if it is successful. FCA brought the share price into it so use it as a negotiation back over.
Why would this not be paid on time if they have £160M sat in the bank? This £160M was a available to restart lending which has not happened so logic is pay off the notes due on 25th June. Where is the issue?
The answer is obvious as to why it can go insolvent. The issue is with the level of claimants coming out of the woodwork. Presently they have a block on making payments to them. They have time to put a second SOA together. If a SOA can be put together that works for everyone then Amigo can survive. Amigo needs the SOA in place to then move forward with lending etc. All this talk of how much many they have or don't have is not relevant if they can't get the SOA in place to manage the claims effectively.
Why don't Amigo ask FCA if they would back them putting in £100million into redress pot for SOA with no future percentage of profits etc. Amigo starts relending and takes a loan to cover the £100million. Amigo repays the interest and pays down the loan over the next 5 years. We all lose as there is added debt to the balance sheet which would hold back the share price but it is at least a fixed cost and a lid has been put on any future claims.
As has been suggested why not just buy up 10%-20% of the existing shares and put them in the scheme pot. Cost would be about £4million-£10million. These shares could then be sold when they hit a target valuation perhaps £1 back to the open market. 47.5million share raises £47.5million. 95million shares raises £95million to go into the pot. This would not cost us or bondholders. They add this into the existing scheme suggested.
Lloydyboy, where does the money come from?? The potential total claims could run into hundreds of millions? The scheme is needed to cap this and keep the company solvent. Have you actually looked into the detail I guess not.
I am sure Q4 results are due this week so they may tie everything up in one RNS. I imagine there was no plan B however given the situation the BOD should be working over time to see if one can be put together quickly which the FCA are prepared to back without hopefully another vote by using the original vote along side improved redress.
As someone has suggested why not dilute by offering equivalent to 15% of total shares and put them in the SOA pot. If Amigo bought them up today they would need 71.5 million shares at 10p-12p = adding around £8million into the pot. The SOA pays the pot 15% of total profits as noted for 4 years. After 4 years the 15% share holding is sold on the open market. If shares are then at £1-£2 then there could be an additional £75million-£150million going in the pot in 4 years time. Surely that would be a very fair outcome for all including ourselves?? I also think this would be passed by FCA and court and would not need another vote. Would you vote yes or no??
Chantlecler, would the judge ask the two parties to have dialogue and request them to update him/her by a set time scale on if they have found some compromise on their positions. If that can not be found would I assume the judge will then be more pressured into making a decision himself independently regardless of both parties views and a decision is made on his own understanding and thoughts and whatever law is on this.
What's the betting the redress pot is changed from the following statement, The Company anticipates the immediate cash payment under the Scheme towards the Redress Claims Pool will be £15 million, with the option for this to increase should the anticipated Balance Adjustments be less than expected, up to an extra £20 million of cash. This may well change to a guaranteed 35 million plus 15% of pretax profits for the next 4 years. There will likely be no profit in 2021 anyway so that is one year down. I think this adjustment would be enough to pacify FCA on this ahead of judge confirming SOA has passed.
Chantlecler, what is your opinion on the case? Have you invested here or are you looking to invest here?
It will be Vinson topping up to his 20million target lol.