Amigo Regulatory News (AMGO)

28 July 2021

Amigo Holdings PLC

("Amigo" or the "Company")

Market update

Amigo Holdings PLC (LSE: AMGO), a leading provider of guarantor loans in the UK, provides an update on correspondence received today from the Financial Conduct Authority ('FCA') in relation to Amigo's plans to seek approval for a new Scheme of Arrangement to deal with current and potential redress creditors (the 'Scheme'). The letter raised some issues which could impact on forward looking statements contained within the annual report covering the results for the year ended 31 March 2021. As a consequence, the Company announces that the release of the annual results for the year ended 31 March 2021 will now not take place, as planned, on 29 July 2021.

The FCA and the Company continue to correspond in relation to the construction of a Scheme which deals adequately with the key points raised in the judgment on the original Scheme of Arrangement. 

The FCA has also confirmed that it would not expect to authorise a return to lending by Amigo until after the sanctioning of a new Scheme, by the High Court, including on the grounds that Amigo would need to demonstrate its financial viability and ability to meet its regulatory obligations, including, for example, the appropriate resources threshold condition, in order to return to lending.

We will update the market with a new date for the publication of the annual results as soon as possible. The delay in publishing its annual results on 29 July 2021 constitutes a technical breach of one of the covenants for the 7.625% Senior Secured Notes due 2024, which requires the publication of the annual results for the Amigo Loans Group bondholder group, within 120 days of the financial year end. The breach is not an automatic event of default and is remediable by the publication of the annual results, within a 30 day grace period after notification by the Trustee of the Notes or by holders of 25% of the principal amount of the outstanding Notes.

Comment from Gary Jennison, CEO: "As a new Board and management team we remain focused on finding a solution to the issues caused by historical lending. Our priority is to successfully present a revised Scheme of Arrangement but working through this is clearly very complex which has impacted the timing of our results. We continue to believe this is the best route forward for all our stakeholders, and specifically for those customers who have a valid claim for redress, and we are engaging constructively with the FCA taking on board their views and the comments made by the court."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. The person responsible for this announcement is Roger Bennett, Company Secretary.

Company

Amigo Holdings PLC investors@amigo.me

Kate Patrick Head of Investor Relations

Roger Bennett Company Secretary

Media enquiries Amigoloans@lansons.com 

Laura Hastings 07768 790752 

Tom Baldock 07860 101715

Additional information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this announcement or otherwise.

Senior Secured Notes

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's 7.625% Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent. Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.

-ENDS-