AMIGO - comment
The publication of various key court dates for Amigo’s Scheme of Arrangement provides the crunch dates for the company and bondholders. The Court Sanction meeting will take place on 23/24 May with the final determination of the Court coming a few days later. We are unlikely to know for sure whether or not the FCA objects to Amigo 2.0 much before this date. The FCA is highly unlikely to give formal support. Having observed events in recent weeks, however, we are highly confident that this second scheme will be successful. In the unlikely event that If the FCA doesn’t support a return to lending the result will be a winding up of Amigo with the remaining bonds repaid at par. If Amigo 2.0 is approved, then the process for the capital raise will begin (with up to 9-Months allowed, but surely to take place earlier). In theory, creditors/shareholders could still derail the process by voting against the Scheme, but as this would lead to a worse outcome for both, and it is therefore unlikely. For schemes under English law, 75% by value and a majority in number of the votes of those who vote in each class.
Key Court Dates:
- Court Convening Hearing 8th March 2022
- Court Sanction Hearing 23/24 May 2022
The Amigoscheme website has been updated with the new documents incuding the practice statement and a link is attached below.
Amigo Loans Scheme | Scheme of Arrangement (amigoscheme.co.uk)