Amigo - comment

Amigo is a step closer to winding up after admitting that it will unlikely succeed in raising £45m in equity required to meet the terms of its Scheme of Arrangement (SoA). The £21m in commitments received so far is insufficient to both re-launch and to make the £15m payment to its creditors required under the SoA. Amigo is exploring the feasibility of removing the £15m charge and reducing the shortfall to £6m, but this would require another trip back to the High Court to get shareholder and creditor approval. Why the mis-selling creditors would give up a £15m payment to benefit shareholders seems a hard sell to us.

 The current SoA requires a Capital Raise of which £15m proceeds will go to creditors. Amigo had sized its proposed capital raise at £45m => £30m of fresh capital + £15m to the creditors. It has only been able to source £21m => a £24m gap. If Amigo can shed the additional payment to creditors the gap could be bridged by £6m in extra cash with a further £3m from working capital management. The deadline for execution is 26 May 2023. 

 https://polaris.brighterir.com/public/amigo_loans/news/rns/story/x21jl6w