Amigo Holdings plc AMGO

Amigo is an unsecured loan firm. This firm offers people loans built on trust of a guarantor rather than a credit score, and was the first company to be granted FCA approval that offers this type of product.

Any views on this stock ?

@Raul seemed quite keen, hopefully he was serious:

Hope may be the last thing to die

I call AMGO underdog with hard challenges ahead because it may go into administration next month, cuz their plans depend on FCA approval, which is not a good place to be if you ask me.

Hope at will, but bare in mind that hope doesn’t put food on the table by itself

Not investment advice.

DYOR

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Any update on views ?

https://uk.advfn.com/stock-market/london/amigo-AMGO/share-news/Amigo-Holdings-PLC-Regulatory-Update/84584506

I would avoid

https://www.cityam.com/fca-gives-tentative-go-ahead-on-amigos-compensation-scheme/

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It’s 9.24am.
Price has dropped 34% from yesterday’s closing price I suppose

I’ve seen it as low as 5p since I’ve been invested, so this won’t put me off. Given the negative news, I think the drop makes sense. I imagine though that it’ll recover.

I can only hope it drops even further so I can feel free to buy again

I was thinking this too.
Will it reach 6p again?

I pretty much doubt it. Will be ready if it does

Creditors meeting today (nearly over I believe), have heard that it has gone well so far. I doubt it will reach 6p again. Potentially an RNS following today’s meeting to catapult the share price either before close or tomorrow. Bybrook capital invested a significant amount recently. Next hurdle is next wednesdays court hearing which IMO will be approved despite the FCA wanting to object on the basis of fairness. The reality is, what the FCA deem as fair is subject to their own policy rather than being fair in legal terms.

Scheme of Arrangement: update on creditors’ meeting

Amigo Holdings PLC (LSE: AMGO), a leading provider of guarantor loans in the UK, provides an update on the Scheme of Arrangement (the ‘Scheme’) of ALL Scheme Ltd (‘SchemeCo’) announced on 25 January 2021, following the completion of the Creditors Meeting held on 12 May 2021.

Amigo is pleased to announce that, of the creditors who chose to vote, 95.09% by number representing 95.72% by value, voted in favour of the Scheme. In total, the Company has received 74,877 votes in favour of the Scheme and 3,863 votes against the Scheme, with values of £230,744,046 in favour and £10,319,764 against.

The Scheme requires more than 50% of all creditors who vote to vote in favour, and the total value of their claims to represent at least 75% of the value of the claims of all creditors who vote. In order to become effective, the Scheme requires sanction by the Court. The Court hearing to sanction the Scheme of Arrangement is listed to be held on 19 May 2021.

Gary Jennison, Chief Executive Officer of Amigo, commented: "Our customers have voted overwhelmingly in support of the Scheme, showing that customers due redress believe that the Scheme is the fairest and best option for them. We are naturally disappointed by the FCA’s stated intentions to oppose the Scheme.

If the Scheme is not approved by the Court, then Amigo is highly likely to enter into administration. This will deny mis-sold customers access to a share of the compensation to which they are entitled and will also have a significant impact on the many millions of UK adults who cannot access mainstream credit. The new Board and management hopes that the voting and views of Amigo’s past and present customers are listened to and they are not denied the compensation they are entitled to. We strongly believe that the Scheme is the best for all our customers - past, present and future - and the only way for Amigo to continue to be part of the solution for providing financial inclusion in the UK."

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Any news so far on judgement day :see_no_evil: today?

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Will it rhyme?!