Amigo shares surge as it secures funding line extension
Amigo Holdings
0.22p
16:49 26/04/24
Amigo shares surged on Friday after the guarantor lender said it had secured a three-month extension to a funding line, as it considers its options after the High Court rejected a rescue plan that would have seen compensation payments for mis-selling capped.
Financial Services
14,051.23
16:59 26/04/24
The company, which was charging its customers a representative APR of around 50%, has agreed a further extension of the securitisation facility performance trigger waiver period from 25 June to 24 September 2021.
However, given the current suspension of all new lending at Amigo, the size of the facility has been cut to £100m from £250m. Amigo said all cash generation arising from customer loans held within the facility is restricted and will continue to be used during the extended waiver period extension to further reduce the outstanding balance.
As of the date of this extension, the facility was drawn at £27 million.
"Following the recent High Court judgment relating to Amigo's proposed Scheme of Arrangement, the board of Amigo has reviewed options with the Financial Conduct Authority and discussions are ongoing. This could result in a revised scheme of arrangement or insolvency," it said.
At 0830 BST, the shares were up 8.9% at 9.52p.