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Amigo faces insolvency after court throws out payouts bid

by LLB Editor June 1, 2021

written by LLB Editor 1^st Jun 21 11:03 am

Sub-prime lender Amigo is on the brink of insolvency after a plan to cap payouts to customers who were mis-sold loans is stuttering.

Gary Jennison, Chief Executive Officer of Amigo, commented: “Without a scheme, Amigo faces insolvency as it will be unable to satisfy its customer compensation claims as well as meeting the legally binding funding obligations owed to its secured creditors.

“The Board is committed to finding the best solution it can for Amigo’s customers and other stakeholders and will be working with its stakeholders, including the FCA, to achieve that solution as quickly as it can.”

Amigo, which has 150,000 current customers and 500,000 past customers, lost a High Court fight to set aside a separate pot of money for compensation.

Now Amigo has said it will not appeal against that decision and was, instead, investigating all options – including an alternative plan, or insolvency.