REG - Amigo Holdings PLC - Update on the Schemes of Arrangement

Amigo ResourcesAnnouncement

11/04/2022 07:00

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RNS Number : 8776H  Amigo Holdings PLC  11 April 2022

11 April 2022

Amigo Holdings PLC ("Amigo" or the "Company")

 Update on the Schemes of Arrangement

Amigo Holdings PLC (LSE: AMGO), a provider of guarantor loans in the UK,
provides an update on the reported position of the Financial Conduct Authority
("FCA") in relation to the Schemes of Arrangement pursuant to Part 26 of the
Companies Act 2006 proposed by ALL Scheme Ltd ("SchemeCo") (the "Schemes").

Amigo has received notification from the FCA that, in relation to the Schemes,
it has concluded that:

(1)  The FCA does not consider it necessary to appear at the sanction
hearings either to oppose the Schemes or to present any evidence of its own
concerning the Schemes unless the court requests or otherwise requires
assistance from it.

(2)  There has been a significant improvement in the fairness of the Schemes
compared with Amigo's first scheme considered by the court on 19 May 2021.

(3)  Partly as a result of the subsequent improvements, from the information
that the FCA has been provided with, the Schemes taken as a whole appear to be
appropriate in the circumstances and the FCA is conscious that in an
insolvency process redress creditors would likely receive less.

The FCA has made clear that it will continue to engage closely with Amigo,
taking into account the outcome of the sanction hearings. The FCA has also
reserved its position in respect of the Schemes and its right to intervene,
including to engage with the Court process or to take regulatory action
against Amigo at any point, if the FCA considers that facts or circumstances
have sufficiently changed.

Gary Jennison, CEO of Amigo said: "We thank the FCA for its confirmation that
there has been a significant improvement in the fairness of the Schemes
compared with Amigo's first Scheme, which was rejected by the Court in May
2021. We also welcome the confirmation that the FCA does not consider it
necessary to appear at the sanction hearing to oppose the Schemes or to
present any evidence of its own concerning the Schemes. These confirmations
are positive steps towards delivering the best outcome possible, given the
circumstances, for our customers, creditors and other stakeholders. There
remain significant obstacles to overcome, including the need for a
significantly dilutive equity issue, to recapitalise the ongoing business
given the requirements of the Schemes for the transfer of virtually all
existing assets to the redress creditors."

ENDS

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.

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.

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.

Contacts:

Amigo Holdings PLC       investors@amigo.me (mailto:investors@amigo.me)
 

Kate Patrick                       Head of Investor
Relations

Roger Bennett                  Company
Secretary

 

Media enquiries              Amigoloans@lansons.com
(mailto:Amigoloans@lansons.com)

Laura Hastings                   07768 790752

Ed Hooper                          07783 387713

 

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