Amigo - comment

The High Court has formally announced that it has approved Amigo’s potential schemes to be put to creditors. Our central case is that bondholders will have the opportunity to participate in the capital raise as Creditors will approve the New Business (Amigo 2.0) scheme over Winding Up. The remaining bonds are cash covered so our downside in the creditor vote is limited either way and Amigo 2.0 offers creditors the best recovery. The sanctioning hearing is on 23/24 May and having addressed the defects in the previous proposals, approval by the Judge is likely. The FCA will still need to be kept onside throughout this process and beyond.